JAKARTA, June 11 Indonesian coal miner PT Bumi
Resources said on Wednesday its lenders had agreed to
close a crucial debt-to-equity swap with Chinese sovereign
wealth fund CIC, enabling it to pay the coupon on its
In October, CIC agreed to convert the $1.3 billion debt it
was owed by Bumi Resources into stakes in the Indonesian company
and associated subsidiaries.
Bumi, which is controlled by the Bakrie Group, has $300
million bonds maturing in 2016 with a coupon rate of 12 percent,
according to Thomson Reuters data. The company had said it
needed consent from its lenders for the closure of the CIC
transaction and payment of the 2016 coupon.
"PT Bumi Resources Tbk wishes to inform its stakeholders that
all consents from lenders to close the CIC transaction have been
confirmed and, accordingly, the outstanding coupon against its
2016 bonds have been paid today within the cure period," Bumi
said in a stock exchange filing.
Bumi shares were suspended by the Indonesian Stock Exchange
before the announcement. Both its 2016 bonds and
2017 bonds were trading unchanged, having moved
up from their all time lows struck in May.
Bumi Resources, Asia's biggest thermal coal exporter, had
its debt rating downgraded last year on concerns over liquidity
constraints faced by the group and the financial pressure of
weak commodities markets
Some traders said the approval of the CIC deal and the
coupon payment did not erase their concerns about Bumi's
"Bumi has been funding its aggressive expansion with
short-term loans. When the loans are due, they often do not
match the company's cash condition," said Irvin Patmadiwiria,
president director of Lautandhana Investment Management.
"But even with the announcement, there are still concerns
about Bumi's cash structure to fulfill its other obligations."
(Reporting by Fathiyah Dahrul and Fransiska Nangoy in JAKARTA
and Umesh Desai in HONG KONG; Editing by Miral Fahmy)