PT Bumi Resources Tbk

Project Overview

Our Client is one of Indonesia’s largest listed coal and mineral mining group.

Challenges

• Following negotiations with secured noteholders, convertible bondholders, and direct lenders under a Singapore moratorium framework, the Client agreed on a comprehensive restructuring term sheet to resolve ~USD 6.3 billion in liabilities.
• The restructuring required implementation through Indonesia’s PKPU framework to formalize the settlement with creditors. A key challenge was the highly fragmented creditor base, particularly among noteholders and bondholders, which created uncertainty around achieving the voting thresholds required to approve the Composition Plan. In addition, the company faced potential legal exposure from numerous trade creditors and complexities arising from related-party creditor claims pledged within the secured creditor security pool.
• AJCapital advised the Client in implementing the agreed restructuring term sheet into court-approved PKPU restructuring, which involved a complex capital structure transformation across multiple creditor classes.

Our Approach

• Worked together with the legal counsel to provide detailed creditor mapping and visibility into the composition of individual noteholders and bondholders to support targeted engagement and voting strategy.
• Developed negotiation strategies to secure sufficient creditor participation and voting quorum for approval of the restructuring plan.
• Established and coordinated a dedicated engagement framework with smaller creditor groups to manage communications and alignment between the debtor and these creditors during the PKPU process.
• Identified structural risks associated with pledged related-party claims and advised on mitigation strategies within the PKPU framework.
• Worked closely with the company and legal counsel to review and refine the Composition Plan to ensure alignment with the previously agreed restructuring term sheet.

Outcome