JAKARTA (TheInsiderStories) – Indonesia’s largest coal producer PT Bumi Resources Tbk (IDX:BUMI) has set Dec. 11, 2017 as the effective date for the exchange for the old debts worth $2.6 billion with the new securities and new loans.
The company’s Director & Corporate Secretary Dileep Srivastava said in a statement on Thursday (7/11) that its three Special Purpose Vehicles (SPVs), namely Enercoal Resources Pte Ltd, Bumi Capital Pte Ltd, and Bumi Investment Pte Ltd., the issuers of Guaranteed Convertible Bonds (due 2014), Guaranteed Senior Secured Notes (Due 2016 and 2017) have conveyed Settlement Instructions to eligible lenders on Dec. 5, 2017.
“The debt composition plan is in its final stage of implementation when the debt for equity and MCBs is expected to be exchanged with eligible lenders. The above debt for equity conversion has turned net equity to positive $207 million compared with negative net equity of $2.8 billion in the first half of 2017,” Bumi said in a statement.
The exchange consideration formula for each issue that Noteholders should expect to receive for each US$1000 principal amount has also been advised by value of New Senior Secured Debt, MCB (mandatory convertible bond), CVRs (Contingent Value Rights) and shares, as applicable.
The mechanism, procedure and relevant details for the settlement have been described. It has also been advised that in terms of the Debt Composition Agreement, Holders who failed to participate by submitting their Notice of Election prior to Sept. 11, 2017 would have their applicable notes cancelled as of Dec. 11, 2017 (the present effective date).
The individual settlement notices by the 3 SPV’s on Dec. 5, 2017 have already been conveyed to eligible lenders and the beneficial owners.
Bumi claimed hat is creditors have responded well with the company’s debt restructuring. The company, it said, attended several credit and equity investor forums in Indonesia and abroad with quality international and local brokering houses to highlight its turnaround story.
“The credit community has responded positively to the debt composition agreement and the residual debt is reportedly trading at a premium and MCBs at a deemed value above the present share price,” it said.
Bumi Resources has reported a net income (attributable to owners of parent) of $263.8 million in the nine months to september 2017 compared with a net income of $73.0 million in the same period last year, or a positive profit swing by $190.8 million, year on year.
Its revenues reached $3.6 billion, compared to only $2.6 billion in the same period last year, or up 38.5 per cent year-on-year. The increase was boosted by the rise of coal price to an average of $55.9 per tons in the nine months period, up from $40.1 per ton in the same period last year, or increased by 39.6 per cent. Its realized coal price in the third quarter alone reached $58 per ton.
As for full year 2017, the company said that there is indication of a continuing rise in coal price and this augurs well for prospects for the company for rest of the year. Its full year sales volume is expected to reach 86 million tons at a price 40 per cent higher than realized fiscal year 2016 at $42.1 per ton. (*)