Court approves request for extension of permanent PKPU to Bumi

By Romel S. Gurky

The Central Jakarta Commercial Court approved on Thursday a request for the extension of so-called Permanent PKPU (debt payment postponement) to IDX-listed coal giant PT Bumi Resources Tbk.

The court?s decision comes after creditors of Bumi on Wednesday decided to postpone voting on the company?s debt restructuring proposal to November 9 or 10 of this year.

Bumi issued a statement on Friday providing summary of the Central Jakarta Court ruling as follows.
a. to grant and to declare the extension of Permanent PKPU (PKPU Tetap) to Bumi, from the date of October 27, 2016, up to November 28, 2016;
b. to declare the hearing of deliberation of the Panel of Judges on November 28, 2016; and
c. to order the Administrators to summon the creditors, known to Bumi, to attend the above meeting in the Commercial Court.

The extension was granted given the fact that:
1. Key creditors and the company needed more time to engage in constructive discussion to agreeing mutually satisfactory terms of the Composition Plan;
2. There was a request from Bumi creditors to postpone the Meeting for Voting the Composition Plan, specifically: (i) CDB has requested the Administrators and Supervisory Judge in Creditor's Meeting to postpone the Meeting for Voting the Composition Plan by November 11, 2016;
(ii) the notesholders holding in aggregate US$451 .056.441, has requested for Bumi to seek a 21 (twenty one) days extension; and
(iii) PT. Samuel International and Paradiso Resources Ltd as unsecured creditors has requested for Bumi to extend the PKPU process; and
3. Bumi creditors has unanimously agreed for the extension of Permanent PKPU in Creditor's Meeting dated 26 October 2016.

Editing by Reiner Simanjuntak