Bumi Plc, the second-worst performer in London’s FTSE 350 Mining Index this year, said PT Recapital Asset Management missed a deadline to repay a $231 million investment.
The funds were due to Asia’s biggest power-station coal exporter PT Bumi Resources, which is 29 percent owned by London-listed Bumi. PT Bumi and Recapital are in talks for a new repayment schedule, Bumi said today in a statement. The stock dropped as much as 12 percent, the largest intraday decline since June 12.
Bumi board member Rosan Roeslani is the president director of Recapital and the funds were at the center of a dispute between founder Nathaniel Rothschild and Indra Bakrie, Bumi’s co-chairman. Rothschild in November called for a “radical cleaning up,” of Bakrie’s PT Bumi and a timetable for the “repatriation of funds deposited with connected parties.”
A schedule for the early repayment to PT Bumi from Recapital and another shareholder, PT Bukit Mutiara, was announced Nov. 17 and reaffirmed at a December meeting between Rothschild and Bakrie.
Bumi declined 4.9 percent to 337.6 pence at 10:05 a.m. in London. It has slumped 61 percent this year and has a market value of 821 million pounds ($1.3 billion). Aquarius Platinum Ltd. has dropped 75 percent this year, more than any of the other 23 companies in the benchmark mining index.
Bumi Resources earlier sank to the lowest level in more than three years in Jakarta trading. It posted a first-half net loss of $322 million on Aug. 26, compared with a restated profit of $232 million a year earlier.
CIMB Group Holdings Bhd., Southeast Asia’s top-ranked investment bank, cut Bumi Resources to underperform, equivalent to sell, from neutral.
Coal prices at Australia’s Newcastle port, an Asian benchmark, have fallen 21 percent this year as the Chinese economy slowed and after U.S. and South African producers shifted coal sales to Asia amid the debt crisis in Europe.
Bumi Plc Chief Executive Officer Nalin Rathod said Aug. 9 that a slump in prices for power-station coal may have a “material impact” on future profits.