Coal mining company suspended after debt-settlement offer: Jakarta

Coal mining company suspended after debt-settlement offer: Jakarta

The Indonesia Stock Exchange (IDX) suspended share trading on Thursday of coal miner PT Bumi Resources (BUMI) and its subsidiary, PT Bumi Resources Minerals (BRMS), following the announcement of a debt-settlement proposal a day earlier.

BUMI, a major player in the country's thermal coal industry, revealed on Wednesday that it had entered into an agreement with its creditor, the China Investment Corporation (CIC), to clear its US$1.3 billion (S$1.6 billion) debt in exchange for part ownership in four BUMI subsidiaries, namely BRMS, PT Kaltim Prima Coal, Indocoal Resources (Cayman) Ltd., and PT Indocoal Kaltim Resources. BUMI also plans to issue new shares to the CIC, amounting to $150 million (S$198 million), as part of the debt settlement.

"Considering the need for further information and to maintain orderly and efficient equity trading, the bourse has decided to temporarily halt the stock trading of Bumi Resources in all markets, starting from the first session on Oct. 10, for an undetermined period of time," the IDX said in its statement.

The IDX made a separate but similar statement for BRMS' stock trading. It added that it had sought further information from the companies involved.

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