Bumi extends US$425m loans to Dec
JAKARTA: A unit of Indonesia's biggest miner, PT Bumi Resources, has extended US$425 million (RM1.37 billion) worth of maturing loans for three more months, the company said, averting an immediate financial squeeze as it struggles with a growing pile of debt.
It was another last-minute debt extension by the coal mining group, controlled by the politically-connected Bakrie family, after Bumi Resources refinanced a maturing US$150 million debt in August at a high cost.
PT Bumi Resources Minerals, a unit of PT Bumi Resources, extended two loan facilities - US$100 million and US$325 million - from Credit Suisse due this month to December, the company said.
The loans arranged by Credit Suisse involved creditors such as US hedge fund manager Farallon Capital Management's Noonday unit and the Swiss bank itself, sources said.
The extension comes after Moody's Investors Service downgraded the corporate family and senior secured bond ratings of PT Bumi Resources in late July to Caa1 from B3. Reuters