Withers has advised Indonesian mining giant Bumi Resources on debt restructuring transactions valued at $4.5 billion, reportedly the largest debt restructuring deal in Southeast Asia last year, and one of the most complex deals of its kind ever in the region.

The deal saw Bumi issue new loans and securities in exchange for its financial debts, including three publicly issued bonds, six bank syndicated loans, and loans from both China Investment Corporation and China Development Bank.

Bumi's creditors were represented by Kirkland & Ellis, Davis Polk & Wardwell and King & Wood Mallesons. Meanwhile, Hogan Lovells represented The Bank of New York Mellon as exchange agent and tabulation agent, while Akin Gump Strauss Hauer & Feld represented a group of the convertible bondholders during the Suspension of Debt Payment Obligations (PKPU) process.  

According to a release, the debts have now been exchanged for approximately $2.3 billion of new debt, comprising senior loans and notes, mandatory convertible bonds and contingent value rights, in addition to new Bumi equity issued pursuant to a rights offering for the remainder of the amount.  

Withers provided U.S. and English law advice to Bumi and coordinated local law advice for Indonesia, Singapore, Mauritius, Seychelles and Cayman Islands. The law firm also advised Bumi on all aspects of its restructuring, from a section 210(10) stay proceeding (moratorium) in Singapore to a PKPU proceeding in Jakarta, which is an Indonesia court-sanctioned scheme of arrangement, aside from related multilateral negotiations with its creditors. 

The Withers team was led by partners Tahirah Ara (Singapore) and Patricia Lee (New York), and included London banking partners David Dannreuther and Alix Prentice. Also involved were tax partners Stephen Banfield (Singapore) and Eric Roose (Tokyo).

 

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