Bumi Warns of Default If Restructuring Consent Not Won
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PT Bumi Resources is “highly likely” to miss payment on $375 million of convertible bonds in August if holders don’t agree to a proposal to delay the debt’s maturity, it said in a memorandum to noteholders.
The Indonesian coal miner is seeking consent to amend the terms of the bonds, including extending the debt’s maturity to July 2021 from Aug. 5 and cutting the annual coupon to 7 percent from 9.25 percent, according to a June 5 consent solicitation memorandum obtained by Bloomberg News. It hasn’t paid the coupon that came due on June 5, the document shows.