(Adds Bumi comment, updates share price)
By Fransiska Nangoy and Eveline Danubrata
JAKARTA Aug 11 Indonesia's biggest coal miner
PT Bumi Resources Tbk said on Monday that it intends
to pay the 9.25 percent interest on its $375 million debt by
Tuesday while seeking to extend the payment of the principal of
the convertible bonds to April 2018.
The company controlled by the Bakrie family said on Friday
that it will hold a meeting on Aug. 22 with its bondholders to
seek their agreement on the proposed change in terms.
Bumi previously said it has until Aug. 12 to reach a new
agreement with its bondholders. Payment for the bonds was
originally due on Aug. 5.
On top of asking bondholders for an extension in the
principal payment at the Aug. 22 meeting, Bumi will also propose
backing the bonds with collateral, Bumi Director Dileep
Srivastava said in an email.
"We expect a favourable vote on Aug. 22," he said.
Bumi shares shed 5.7 percent on Monday on concerns about the
company's ability to pay its debt. The stock fell to 182 rupiah,
the lowest since July 25, underperforming the Jakarta stock
exchange which gained 1.2 percent.
"The market is still sensitive about Bumi and the group's
debt that is maturing in the coming months, especially amid such
a soft coal market," said a trader with a Jakarta-based
Moody's Investors Service said last week that Bumi faces
substantial near-term maturities of more than $1 billion over
the next 12 months and does not have the internal capacity to
(Editing by Ryan Woo)