CIC agrees $1.3b debt-for-equity swap with Bumi Resources

According to a regulatory filing, the Chinese sovereign wealth fund will receive a 42% shareholding in Bumi Resources Minerals plus 19% interests in three other subsidiaries: Kaltim Prima Coal, Indocoal Resources and Indocoal Kaltim Resources. It will also be issued new shares in Bumi Resources worth $150 million.

The swap will settle two tranches of a $1.9 billion loan extended by CIC in 2008 debt that are due to mature in 2014 and 2015, respectively. Residual debt will convert into a new three-year loan at a competitive market rate.

Bumi Resources, Asia's biggest thermal coal exporter, saw its debt rating downgraded by ratings agencies in July amid concerns about liquidity constraints and weak commodities markets. The company posted a net loss of $666 million for 2012 and had $4 billion in debt.

Jakarta-listed Bumi Resources is part of the Bakrie family's business empire. The company is 29.2%-owned by Bumi, a London-listed vehicle the Bakries created in partnership with financier Nat Rothschild. Following a bitter falling out between the two sides, the Bakries now plan to buy back the Bumi stake.

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• Topics
• Credit/Special Situations
• Restructuring
• Southeast Asia
• Industrials
• Southeast Asia
• China
• Indonesia
• Commodities
• Distress
• CIC