Giant coal miner Bumi Resources (BUMI), controlled by Bakrie Group, has commenced the conversion of its debt worth US$3.8 billion into equity or new loans. BUMI said it will exchange US$1.9 billion to Country Forest Limited (CFL), US$600 million debt to China Development Bank Corporation, US$375 million (9.25% interest rate) guaranteed convertible bonds issued by Enercoal Resources Pte Ltd and other syndicated loan, the US$300 million (12%) guaranteed senior secured notes issued by Bumi Capital Pte Ltd, and the US$700 million (10.75%) guaranteed senior secured notes issued by Bumi Investments Pte Ltd. BUMI expects to cut its debt to US$2,89 billion from US$5.89 billion after the said transactions. Its equity will be positive at US$64.2 million, from current negative US$2.78 billion.
