Bumi Gets 6 Months Debt Settlement Extension

TEMPO.CO, Jakarta - Bakrie Group's coal mining unit, PT Bumi Resources Tbk, said a Singapore Court has given a six-month extension of debt payments for three of its subsidiaries. The time extension is given before creditors decide to take force and legal efforts.

The three subsidiaries registered as legal entities in Singapore are Bumi Capital Pte Ltd, Bumi Investment Pte Ltd, and Enercoal Resources Pte Ltd. The three companies have a total debt of Rp16.7 trillion.

Bumi Resources director and corporate secretary Dileep Srivastava yesterday said in a written statement to the Indonesia Stock Exchange (IDX) that the time extension is given in order to facilitate negotiations with bond and securities holders regarding restructuring efforts.

Bumi failed to pay up on its semi-annual bond coupons that were due at the beginning of this month. On November 5, Dileep said Bumi Investment has postponed the interest payments from October to late November 2014.

In early October, Bumi's proposal to pay off its debts through shares conversion was rejected by creditors. "We will continue to pursue negotiations with creditors in order to refinance," said Bumi Resources president director Ari S. Hudaya.

Bumi had wanted to sell US$275 million worth of shares to five creditors, Axis Bank Ltd; Credit Suisse; Deutsche Bank; UBS AG and China Development Bank, as a way to settle its debts. However, lenders want the debts to be paid back in cash.

FAIZ NASHRILLAH | ODELIA SINAGA | NURIMAN JAYABUANA