Bumi Resources Sweetens Debt-Exchange Offer as Default Looms

PT Bumi Resources, the most indebted coal producer in Asia, is trying to sweeten its debt-exchange offer, sending a letter to holders of its $375 million bonds ahead of a repayment deadline next week.

The Jakarta-based coal-mining group, which risks default if it doesn’t pay on Aug. 5, is offering convertible bondholders new terms that include repaying the debt in April 2018, three years sooner than its initial June 5 proposal, which wasn’t successful at a creditors meeting June 20. It’s also considering splitting the 9.25 percent debt into convertible and straight debentures, and paying a coupon on the latter of 8.5 percent, according to the letter, a copy of which was obtained by Bloomberg News. The June 5 proposal was offering a revised 7 percent coupon.