JAKARTA (Yosefardi) – Giant coal miner PT Bumi Resources Tbk (BUMI) proposes new restructuring scheme for its US$3.98 billion debt.
The debt is proposed to pay mostly by new senior secured facility, equity conversion, and mandatory convertible bonds.
BUMI proposes new scheme for debt restructuring amid the persisten decline in coal price and its uncertainty of coal prices in the future.
BUMI also concerns on its cash flow capacity, to maintain part of debt by lowering the interest on loans. BUMI could maintain its debt at US$1.2 billion, based on current cash flow capacity, representing 42.3% of total principal debt, excluding debts to China Investment Corporation (CIC) and CDB.
BUMI proposes debt-to-equity conversion for US$630 million debt or 35.7% of total debt will be converted into shares of private companies under Bakrie Group. Some US$407 million or 23% of total debt will be converted into BUMI shares.
BUMI also mulls to convert part of senior notes (total US$1.61 billion) into BUMI shares. BUMI is now valued for US$4.6 billion.