January 10, 2014 / 10:01 AM / 4 years ago

Indonesia's Bumi shareholders approve CIC debt deal

JAKARTA, Jan 10 (Reuters) - Shareholders of Indonesia’s Bumi Resources, Asia’s biggest thermal coal exporter, approved on Friday a proposed $1.3 billion debt-for-equity swap deal with China’s sovereign wealth fund, CIC, despite the absence of a key shareholder.

“I hope the deal will be final before Chinese New Year, this month,” said Andrew Beckham, a director at Bumi Resources.

A collapse of the Chinese deal would have been disastrous for Bumi Resources, which has suffered downgrades from ratings agencies and faces bloated debt even as coal prices remain soft.

Asia Resource Minerals, the London-listed company previously known as Bumi Plc and which owns 29 percent of Bumi Resources, said late on Thursday it would not attend the Indonesian company’s shareholder meeting on Friday.

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