JAKARTA Aug 4 Indonesian coal miner PT Bumi
Resources Tbk said it is negotiating with the holders
of its $375 million bonds due Aug. 5 to extend the payment date
to at least April 2018 and cut the annual coupon to below 7
percent from 9.25 percent.
Bumi, whose stock hit an 11-year-low last month on fears of
a debt default, has until Aug. 12 to reach a new agreement with
its bondholders, the company said in a stock exchange filing on
Bumi is Asia's biggest thermal coal exporter and is
controlled by Indonesia's influential Bakrie family. It is one
of several Indonesian companies to have funded expansion using
debt. The miner's current problems have highlighted the impact
of a fall in commodity prices and slowing growth in Southeast
Asia's biggest economy.
Moody's Investors Service said on Monday that depressed coal
prices will pressure Indonesian miners' credit quality over the
next 12-18 months and Bumi is the weakest positioned.
"The company faces substantial near-term maturities of more
than $1 billion over the next 12 months, and does not have the
internal capacity to fund these maturities," the ratings agency
Last month, Bumi swung to a net profit of $168 million for
the six months ended June from a $248 million loss a year
earlier, helped by the sale of a subsidiary.
But revenue fell to $1.58 billion from $1.86 billion and the
company's cash stood at $48.7 million at the end of June.
The miner is part of the Bakrie Group which earlier this
year exited London-listed Asia Resource Minerals Plc,
formerly Bumi Plc.
(Reporting by Eveline Danubrata and Fransiska Nangoy;
Additional reporting by Umesh Desai in HONG KONG. Editing by