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Bumi Resources Seeks Debt Relief as $4 Billion Burden Gets Heavy

  • Miner says it's able to sustain less than half its debt load
  • Bonds sink to new low as commodities rout roils markets
Updated on

A new restructuring plan from PT Bumi Resources failed to stop Asia’s most-indebted coal miner’s bonds sinking to a record low Tuesday.

The proposal seeks to convert $1.5 billion of loans and bonds into a 32.5 percent equity stake in the Jakarta-based company, according to a stock exchange filing late Monday. It will also require sovereign wealth fund China Investment Corp. and China Development Bank to swap $780 million of debt with shares in Bumi and unlisted units. Some $410 million of convertible notes will turn into stock after five years, under the plan.