Borneo also failed to close Bumi deal
PT Borneo Lumbung Energi failed to close the US$3.25 billion deal to acquire two coal mining assets of PT Bumi Resources Tbk on the deadline set for Friday afternoon.
"It's not closed yet as the lawyers failed to settle the terms," people close to the deal said.
Borneo was confident to close the deal this week amid concerns of difficulties to raise enough funding for the acquisition. Borneo dismissed fears that Credit Suisse had been difficult to raise US$2.1 billion loans and equity part of the deal. Borneo stated early this week that Singapore's UOB agreed to provide 70% of the equity part of the deal through exchangeable bond facility.
Some says lawyers were bussy to accommodate the demand from creditors to secure interest payments with escrow account of cash proceeds from the operation of two mining companies---Kaltim Prima Coal and Arutmin Indonesia.
"Besides, there are existing agreements with mining contractors which are considered not supportive enough for securing payments to creditors," people familiar with the coal deal said.
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"It's not closed yet as the lawyers failed to settle the terms," people close to the deal said.
Borneo was confident to close the deal this week amid concerns of difficulties to raise enough funding for the acquisition. Borneo dismissed fears that Credit Suisse had been difficult to raise US$2.1 billion loans and equity part of the deal. Borneo stated early this week that Singapore's UOB agreed to provide 70% of the equity part of the deal through exchangeable bond facility.
Some says lawyers were bussy to accommodate the demand from creditors to secure interest payments with escrow account of cash proceeds from the operation of two mining companies---Kaltim Prima Coal and Arutmin Indonesia.
"Besides, there are existing agreements with mining contractors which are considered not supportive enough for securing payments to creditors," people familiar with the coal deal said.
Labels: Bumi Resources, COAL, CSFB
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posted by yosef at 3:05 AM
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