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DJ Bumi Resources EGM Fails to Reach Quorum, Stalls CIC Debt-to-Equity Deal
December 20, 2013

By Linda Silaen and I Made Sentana JAKARTA, Indonesia--PT Bumi Resources (BUMI.JK), Indonesia's biggest thermal coal producer, failed to hold an extraordinary general meeting Friday, diminishing its hopes of accelerating debt restructuring. The company had called for the meeting in the hope of securing shareholder approval to convert some of the money it owed to China Investment Corp. (CIC.YY) into shares in Bumi Resources's units. But the number of shareholders present at the meeting represented only 24.8% of Bumi Resources's voting rights, well below the 75% required for a quorum. Bumi Resources announced in October that it had entered into an agreement with the Chinese sovereign wealth fund to convert part of $1.3 billion in debt principal into 42% equity of PT Bumi Resources Minerals (BRMS.JK) and 19% ownerships each in PT Kaltim Prima Coal. The company, which had an outstanding liability of $7.05 billion as of Sept. 30, will now be seeking to hold the extraordinary meeting on Jan. 10. Bumi Resources shares fell 10.5% to 300 rupiah on news of the failed meeting, while Bumi Resources Minerals shares had slid 7.4% to 199 rupiah as of 0856 GMT. Write to Linda Silaen at and I Made Sentana at Subscribe to WSJ: