Sunday, 10 August 2014


PT Bumi Resources Tbk [BUMI] always attracted investors’ attention and the mass media; understandable because the Extraordinary Meeting of Shareholders was delayed, since it failed to meet quorum. As planned the RUPLB meeting was scheduled for 15.00 PM and ended on 21.00 WIB on Monday [30/6].

One of the strenuous was BUM’s plan to release right issue, which the shareholders finally agreed to release right issue. As agreed, every shareholder holding 20 shares had the right over 31 HMETD shares.

The fund obtained from this limited offering would be used firstly, as company’s working capital amounting to around USD 15.8 Million base on Rp 11.500 exchange rate. Secondly the company would use around USD 48 million or equal to Rp 552 billion to realized USD 48 million or equal to Rp 552 billion to realize Block 13 and Block R2 program of Gallo oil which was a subsidiary company. Thirdly around USD 150 million or equal to Rp 1.72 trillion for debt payment to CBD, Asia Bank, Credit Suisse, and Deutsche Bank.

Fourthly around USD 32.58 million or around Rp 374.67 billion for executing feasibility for concession of copper and gold by PT Gorontalo Minerals. Fifthly around USD 150 million or Rp 1.72 trillion for payment of loan from China Investment Corporation [CIC] through Country Forest Limited on September 18, 2009. Sixthly, the fund would also be spent on payment of all company’s debt to Castleford Investment Holdings.

Of the total fund obtained, USD 600 million had been allocated for paying debt especially to China Investment Corporation [CIC] to the amount of USD 150 million followed by payment to Castleford Investment Holdings Ltd.

It was known that the standard minimum attendance of shareholders at the Extraordinary Meeting of Shareholders [RUPSLB] was 50% plus 1 provided there was no change in company’s rules. “It was agreed that for rights issue attendance is 99%” Commissioner of BUMI Anton Setianto Soedarsono was quoted as saying.

It was said that right issue was the right was to support company’s performance. He was even optimistic that this Corporate act could jack up performance of the coal mine. “Price trend of commodities is also good” he further said.

Meanwhile one of the shareholders named M Saladdin disclosed that the atmosphere at RUPSLB meeting was strenuous. Some shareholders even questioned the reason for BUMI to issue new B series just to pay debt; but as one of the shareholders he stated that he agreed to the rights issue plan proposed by the company. “It’s for paying debt, whet is there to say or do?” he said.

The Director and Company’s secretary of Bumi Resources Dileep disclosed that the shares to be distributed to shareholders in issuing rights issue was 26.174 shares lots at the most was 26.174 billion shares at the most.

He disclosed that the company would use the fund fro corporate act amounting to Rp 1,725 trillion for paying debt to China Investment Corporation [CIC] through Country Forest Limited.

Besides, the company would also use fund of Rp 1.725 trillion for paying debt to Castleford Investment Holdings Ltd, furthermore Rp 2.587 trillion would be used for settlement if “guaranteed Government bond due” 2014 issued by the company on August 5, 2009, and certain amount of debt to creditors the rest would be used as working capital.

The fund obtained from rights issue amounting to USD 15.8 million or Rp 182 billion would be used for company’s working and operational cost while USD 150,000,000 or Rp 1.725 trillion would be used for paying CDB, Axis Bank L 2011 UBS AG 2011-2012.

USD 48 million or Rp 552 billion for realization of program Block 13 and Block R2 of Gailo Oil Jersey, a subsidiary company. USD 32.58 million or Rp 374.67 billion for feasinility study by Gorontalo Mineral, a subsidiary company and USD 150,000,000 Rp 1.725 trillion for paying company’s debt to Bank BRI.

Rights issue of BUMI aimed at fund amounting to Rp 8.05 trillion through right issue to be launched in the next 2 months to reduce company’s debt. Director of BUMI Dileep Shrivastava as quoted by Bloombreg, disclosed that shareholders of BUMI Resources had given company’s approval to issue 32.3 billion new lots of serie B at Rp 250 per lot.

As planned the company would accomplish fund collecting on September 1, 2014 next, assuming that all shareholders had taken their shares. Bumi Resources needed a sun of money to pay their short term debt worth USD 4.7 billion after showing descend of performance due to falling coal price which brought the company closer to default.

This company of Bakrie Group hads suspended payment of interest of bond in USD which they issued and planned to sell asset for paying some debt to some creditors including China Investment Corp.

USD 150 million of this amount obtained through rights issue would be used for reducing debt to China Investment Corp amounting to USD 1.3 billion based on investors presentation on June 26 last.

Another USD 150 million would be used for paying debt to China Development Bank Corp, Credit Suisse Group AG, Deutsche Bank, UBS and Axia Bank Ltd and another USD 150 million would be used for paying debt to Castleford Investment Holdings Ltd. (SS)

Business New - July 4, 2014

No comments: