January 13, 2015

BUMA Transaction Named “Restructuring Deal of the Year”


The Singapore-based Milbank team advised Indonesian coal producer PT Bukit Makmur Utama (BUMA) in connection with the restructuring of its US$800 million Senior Secured Facility, a transaction recently recognized as “Restructuring Deal of the Year” by IFR Asia. The deal involved the restructuring of indebtedness comprising an US$800 million senior secured facility provided to BUMA by a bank syndicate comprising around 10 lenders and other bilateral loan agreements, as well as other independent lease financing transactions. Extensive and protracted negotiations, lasting over 18 months, were led by the Milbank team in connection with the requested re-profiling of the tenor and terms of the significant debt burden of the company, made more complex in light of the tightening global market for coal (and associated mining services in Indonesia).

Milbank partner Jacqueline Chan and associates James Orme and Pearl Grover worked on the award-winning transaction.