December 20, 2013 / 8:26 AM / 4 years ago

CORRECTED-Indonesia's Bumi Resources delays shareholders vote on CIC debt deal to Jan 10

2 Min Read

(Corrects company official's title to director in third paragraph)

JAKARTA, Dec 20 (Reuters) - Indonesia's Bumi Resources postponed a shareholders vote on a proposed $1.3 billion debt-for-equity swap deal with China's sovereign wealth fund CIC to Jan. 10, a company official said on Friday.

Shares in the Indonesian company, which is Asia's top thermal coal exporter, dropped as much as 9 percent to 305 rupiah, the lowest since Dec. 16. The broader index was down nearly 1 percent.

Shareholders were scheduled to vote on the planned deal on Friday, but there was not enough attendance, said Sri Dharmayanti, a director at Bumi Resources.

Under the proposed deal, CIC would convert the $1.3 billion owed to it by Bumi Resources into stakes in the Indonesian company's assets and associated subsidiaries.

A collapse of the Chinese deal would be disastrous for Bumi Resources, which has suffered downgrades from ratings agencies this year and faces bloated debt even as coal prices remain soft. (Reporting by Fathiya Dahrul and Andjarsari Paramaditha; Writing by Eveline Danubrata; Editing by Supriya Kurane)

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