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JAKARTA. Indonesia's largest thermal coal miner, PT Bumi Resources, finally obtained an effective statement from the Financial Services Authority (OJK) to restructure debts totaling US$4.38 billion.
Under the plan, politically-wired Bumi will convert its $1.99 billion debt into equity at Rp 926 (7 US cents) per share.
Meanwhile, another $639 million debt will be covered with convertible bonds, technically known as mandatory convertible bonds (MCB) in scripless form. With an annual coupon rate of 6 percent and a maturity period of seven years, the MCBs will be available at Rp 1.
The equities and bonds will be issued with preemptive rights to subscribe securities (HMETD) for existing shareholders.
“The OJK has confirmed the effective date of June 22 for Bumi’s rights issue and the release of the MCBs,” Bumi corporate secretary Dileep Srivastava told The Jakarta Post on Thursday.
Bumi originally expected the effective statement to be issued on May 26 so that it could trade the HMETD on June 12 to 16.
As part of its debt-restructuring plan, Bumi has brought in three new directors from its two creditors: China Investment Corporation (CIC) and China Development Bank (CDB).
Bumi’s two new directors from CIC are Wayne Yao and Haiyong Yu, while the one from CDB is Ruan Xuefeng.
The company has also added five new commissioners, including two from CIC, Jinping Ma and Benjamin Bao, and one from the company’s bondholders, Thomas M. Kearney. (Viriya P. Singgih)
