Creditors approve Bumi debt restructuring proposal

Creditors of IDX-coal giant PT Bumi Resources Tbk approved on Wednesday a proposed restructuring of its huge debts, much of which to be converted into equity in the company, Kontan reported on Thursday.

The paper said that during a creditors meeting at the Central Jakarta Commercial Court almost all of the company creditors having total claims of more than Rp 86 trillion gave their approval to the proposed debt restructuring mechanism. The court is scheduled to approve the decision on November 28.

Under the proposed debt to equity mechanism, about $1.81 billion debts owed to 11 creditors will be converted into a 39.9 percent stake in Bumi on June 30, 2017.

As has been previously reported, other proposed restructuring mechanisms include the issuance of tradable contingent value rights worth $100 million, and issuance of mandatory convertible bonds worth $639 million.

Meanwhile, 32.24 percent of debt to China Development Bank, will be replaced with new senior secured facility and or new notes maturing in 2021, and the remainder replaced with tranche C facility. (*)