Court approves extension of Bumi PKPU status

The Central Jakarta Commercial Court approved on Thursday a proposal from creditors of IDX-listed coal giant PT Bumi Resources Tbk to extend the so-called debt payment postponement (PKPU) status of the company for another 90 days until September 28, Bisnis Indonesia reported on Friday.

This was said by Chief Judge Suko Triyono. Bumi creditors have earlier agreed to delay voting on the debt restructuring proposal of Bumi for another three months, thus extending the PKPU status, as some large creditors needed more time to make decision, while others have yet to complete verification process of their claims.

Under a PKPU, a company will be given an opportunity to propose a debt settlement to all of its creditors, a restructuring process supervised by the court. If the company fails to obtain creditors' approval for the debt settlement proposal, the court will declare the company bankrupt. (*)