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Indonesian top coal firm gets OK for debt term change
Publication Date : 14-08-2014
Heavily indebted PT Bumi Resources, Indonesia’s biggest coal producer, said it had secured approval from a group of bondholders to change the terms of its US$375 million bonds as the firm struggles with sliding shares and falling coal prices.
The committee represents 30 per cent of the holders of the convertible bonds. Bumi earlier said it was not in a position to settle the bonds in cash this month.
The coal producer plans to meet with bondholders on Aug. 22 to negotiate a change of terms for the bonds, issued by its unit Enercoal Resources. The change of terms includes extending the maturity to at least April 2018 and lowering its coupon to below 7 per cent from 9.25 per cent currently.
“The committee has agreed to support the proposal and has recommended the other bondholders to give support,” director Dileep Srivastava said in a filing at the stock exchange on Wednesday.
Bumi, controlled by the politically connected Bakrie family, needs at least 66.7 per cent of the bondholders to reach quorum at the planned meeting, and 75 per cent of attendees must approve any change to the terms of the debt.