Earlier this week, shareholders of Bumi Resources approved a rights issue to raise a further IDR 8.05 trillion (USD $675 million). In this rights issue, the company will offer shares at a price of IDR 250 per share (significantly higher than its current share price according to data from the Indonesia Stock Exchange). If current shareholders will not purchase the newly issued shares, then CIC as well as Bumi Resources’ other creditor, Castleford Investment Holdings, take the shares.

After these corporate actions, Bumi Resources will still owe USD $632 million to CIC (with an annual interest rate of 6.7 percent).

Earlier, CIC agreed to a debt-to-equity swap in order to help Bumi Resources to make coupon payments on its bonds. Bumi Resources came close to default on its USD $300 million November 2016 bond before paying an overdue coupon in June 2014. Concerns reemerged after the company failed to gain approval from bondholders to change the terms of its USD $375 million bonds due on 5 August. The Bakrie Group-controlled miner intended to extend the maturity of its bonds while lowering the coupon and conversion price. However, this plan was not approved in a bondholders’ meeting held in Singapore on 20 June 2014.

As concerns about a looming default have been waning, shares of Bumi Resources (part of the politically-connected and controversial Bakrie Group) have rebounded recently.