Bloomberg reported that PT Bumi Resources will raise cash from non core assets to accelerate debt repayment, responding to an Indonesia Stock Exchange request to conduct a public presentation on its finances.

Bumi Resources and PT Berau Coal Energy posted statements to the Indonesia Stock Exchange, following a probe initiated by London listed Bumi Plc.

Bumi Plc, founded by Nathaniel Rothschild and owner of 29% of the Jakarta based miner said on September 24 it began investigating potential financial and other irregularities and hired lawyers to look into a USD 637 million writedown of development funds and exploration assets. Moody’s Investors Service changed its outlook on Bumi Resources to negative from stable on September 25, while Standard & Poor’s cut its long-term rating by a step to BB- the next day.

Mr John Teja a director at PT Ciptadana Securities in Jakarta said that “There were some concerns over the company’s debt repayment issue and the statement brought back some confidence back.”

Source - Bloomberg

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