JAKARTA (Yosefardi) – PT Borneo Lumbung Energy & Metal Tbk (BORN) renegotiates the revision on agreement with Standard Chartered as the current situation of global coal industry affect the company’s capability on serving short term debts.
The company had earlier revised loan agreement with other creditors and business partners to adjust the current market condition. BORN’s loan to Standard Chartered amounts US$794.4 million.
On 11 January 2012, the Company signed a term facility agreement with Standard Chartered Bank amounting to US$1 billion for the purpose of funding the indirect acquisition of Bumi plc through the acquisition of 51% of the equity shares of Borneo Bumi and 49% of the equity shares of Bumi Borneo.
BORN had also obtained loan from First Gulf Bank, for working capital. It said the repayment of loan to First Gulf Bank could be extended. BORN’s current ratio reaches 29% with big portion of short term financial liability.
BORN has yet reported its financial results for the first nine months of 2013 as it has not received financial information or data from its affiliates such as Asia Resources Minerals Plc and PT Berau Coal Energy Tbk.
In first half of 2013, BORN’s sales declined 52%, gross profit dropped 98% while net profit plummeted 384%, caused by the drop in hard coking coal price.