Jakarta, 13 April 2018
PT Bumi Resources Tbk (“BUMI” or the “Company”) was awarded at The Asia Legal Awards 2018 in Hongkong for Finance Deal of the Year for the Restructuring Category. The award was given due to the successful Debt Restructuring of PT Bumi Resources Tbk (BUMI) with a value of US $ 4.5 billion to be the largest deal during 2017 in Southeast Asia.
The restructuring itself involves three publicly issued bonds, six bank syndicated loans, and loans from both China Investment Corporation (CIC) and China Development Bank (CDB). These debts have now been successfully exchanged for approximately USD2.3 billion of new debt, comprising senior loans and notes, mandatory convertible bonds and contingent value rights, in addition to new Bumi equity issued pursuant to a rights offering for the remainder of the amount.
Withers Law Firm as international and lead counsel to BUMI on its restructuring advised Company on all aspects of its restructuring from a section 210(10) stay proceeding (moratorium) in Singapore through a PKPU proceeding (an Indonesia court-sanctioned scheme of arrangement) in Jakarta and related multilateral negotiations with its creditors. The restructuring included the region’s first ever contingent value rights or CVRs (contingent on the price of coal) and the first CVR to be listed on the Singapore Stock Exchange ("SGX"). In addition, Withers' corporate tax team was able to successfully obtain for Bumi a 13(4) tax exemption for withholding tax from the Ministry of Finance (Singapore) on the senior secured notes and mandatory convertible bonds issued via Singapore incorporated and tax resident special purpose vehicles.
Withers advice to BUMI provided U.S. and English law and coordinated local law advice for Indonesia, Singapore, Mauritius, Seychelles and Cayman Islands. Bumi's various creditors were represented by a number of international law firms, including Kirkland & Ellis, Davis Polk & Wardwell, King & Wood Mallesons, Rajah & Tann Singapore and Hiswara Bunjamin & Tandjung. The debt restructuring board is Appleby's law firm. Hogan Lovells represented The Bank of New York Mellon as exchange agent and tabulation agent and in its administrative agent capacities and Akin Gump Strauss Hauer & Feld represented the convertible bondholders during the PKPU process and Madison Pacific in its administrative agent capacities.
“This restructuring is very valuable to us. This will encourage the Company to further enhance its confidence to face future challenges, “said Dileep Srivastava - Director & Corporate Secretary.