JAKARTA (Yosefardi) – Giant coal miner PT Bumi Resources Tbk (BUMI), through its unit Enercoal Resources Pte Ltd has proposed the extension of convertible bond payment worth US$375 million.
The bond, issued in 2009 and carries coupon of 9.35%, should have matured this month. BUMI will discuss with bond holders on proposed amendment on the meeting scheduled on August 22, 2014.
BUMI will propose to amend the price of bond conversion and its coupon. As coal market is on the bearish, BUMI admits it is hard to repay bond debt by cash.
BUMI booked net profit of US$168 million in the first half of 2014 against net loss of US$248.6 million in the corresponding period of 2013. Sales revenue dropped 14.8% to US$1.58 billion, mainly due to falling prices of thermal coal.