Bumi to escape Latest default scare

摘要

Indonesia's influential Bakrie family seems to have won another battle to stave off a full-scale restructuring of coal-miner bumi resources. Bumi CFO Andrew Beckham told investors last Thursday that the company had received all the approvals it needed to complete a crucial debt-to-equity swap with China Investment Corp. Bumi has consistently warned that it would be unable to service its debt without completing the CIC agreement, due by the end of June. People who listened to the call said Beckham referred to the approval as verbal, but pointed out that signed consents were expected on Friday. He also indicated that the go-ahead was conditional on Bumi making an overdue US$18m coupon payment on its 12% bonds due on November 10 2016 by the last day of the grace period on June 10.