Bumi Resources: Agreed Loan Repayment Schedule With Two Firms In October
November 17 2011 - 8:25PM
Dow Jones News
Thermal coal producer PT Bumi Resources (BUMI.JK) said Thursday
it had agreed a loan repayment schedule in October with two firms
that it had lent nearly $500 million to.
The company's statement to the Indonesia Stock Exchange comes
after Nat Rothschild, who owns 11% of affiliate Bumi PLC (BUMI.LN),
last week called on Bumi Resources to clean up its operations and
criticized its management. The Financial Times reported that
Rothschild, in a letter to Bumi Resources Chief Executive Ari
Hudaya, had asked why the debt-saddled company hadn't called in the
loans.
Bumi Resources said the loans were fully disclosed in Bumi PLC's
prospectus for its June listing in London. The schedule for the
loan repayments and the use of the proceeds was approved by Bumi
PLC's Board on Oct. 12, it said.
The coal firm said it had reached an agreement with PT Recapital
Asset Management on the repayment of a $231 million loan in the
first half of 2012, and the early repayment of a $251 million loan
to Bukit Mutiara, with half to be repaid next year and the other
half in 2013. It said it would use the proceeds to reduce its
debt.
Bumi said last week it had secured loans and refinanced $600
million of a $1.9 billion outstanding loan to China Investment
Corp. to help manage its debt.
-By Edhi Pranasidhi, Dow Jones Newswires; 62 21. 39831277;
edhi.pranasidhi@dowjones.com