Creditors delay voting over Bumi debt restructuring proposal

Creditors of IDX-listed coal giant PT Bumi Resources Tbk decided during a meeting on Wednesday to delay voting on the company?s debt restructuring proposal to November 9 or 10 of this year from the earlier schedule of October 26, according to a statement issued by the company on Thursday.

Bumi said in a statement that a creditors' meeting was held at the Commercial Court of Central Jakarta on Wednesday (October 26). As originally scheduled, the creditor's meeting would be discussing Composition Plan and Voting. However, the meeting could not be held, due to the following considerations:
a. In order to achieve satisfactory result from the entire PKPU process of Bumi, especially the result of the meeting for voting the Composition Plan, key creditors and the company needed more time to engage in constructive discussions to agreeing mutually satisfactory terms of the composition plan and that the fixed list of creditors has not been released by administrators;
b. 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 PT. Samuel International and Paradiso Resources Ltd as unsecured creditors has requested for Bumi to extend the PKPU process.

Therefore, based on above considerations Bumi creditors have unanimously approved the extension of permanent PKPU to postpone the meeting for voting Composition Plan to November 9 or 10, 2016;

?The approved period of such extension and the date of deliberation hearing of the panel of judges will be subject to the court hearing for granting the approved extension of permanent PKPU in which will be held on October 27, 2016,? the statement said.

Under a PKPU (debt payment postponement), 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.

Editing by Reiner Simanjuntak