JAKARTA, Aug 11 (Reuters) - Shares of PT Bumi Resources Tbk shed as much as 5.2 percent on Monday after Indonesia’s biggest coal miner said it is unable to settle in cash $375 million worth of convertible bonds due August because of weak coal prices.
Bumi shares fell to 183 rupiah, the lowest since July 25, underperforming the Jakarta stock exchange which gained nearly 1 percent.
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 in extending the maturity of the bonds as well as changing their coupon and conversion price.
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.
The delay has fuelled investor concern about a potential default by the company, said a trader with a Jakarta-based brokerage.
“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,” he said.
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 fund them. (Reporting By Fransiska Nangoy; Writing by Eveline Danubrata; Editing by Ryan Woo)