Trading in BUMI, BRMS suspended

JAKARTA. The Indonesia Stock Exchange (IDX) suspended trading of the stocks of coal miner PT Bumi Resources (BUMI) and its subsidiary PT Bumi Resources Minerals (BRMS) on Thursday, a day after the announcement of a debt-settlement proposal.

BUMI, a major player in the country’s thermal-coal mining industry, revealed on Wednesday that it had entered an agreement with its creditor, China Investment Corporation (CIC), regarding a settlement of debts worth US$1.3 billion through transfer of some of the miner’s ownership in four subsidiaries, namely BRMS, PT Kaltim Prima Coal, Indocoal Resources (Cayman) Ltd. and PT Indocoal Kaltim Resources.

BUMI will issue new shares amounting to $150 million to CIC as part of the debt settlement.

“Considering that further information is needed and to maintain orderly, normal and efficient equity trading, the bourse decided to temporarily halt stock trading of Bumi Resources in all markets starting from the first session of Oct. 10 until further notice,” the IDX said.

The bourse made a separate but similar statement on BRMS’ stock trading. It added that it had sought further explanation from the companies. (Raras Cahyafitri)