Indika amendment terms bond

PT Indika Inti Energy Tbk proposed amenment certain terms in its bond indenture to allow use US$60 million for expand.
A key amendment proposed by the company is to allow the use of USD60m earmarked previously for the purchase of a majority stake in a restricted coal-related subsidiary can also be used now to purchase a majority stake in a coal related company that could be unrestricted.
Fitch Ratings has today said that the bondholder consent solicitation process launched by PT Indika Energy Tbk Indika), if accepted by noteholders of the USD250m notes due 2012 issued by Indo Integrated Energy BV and guaranteed by Indika, does not immediately affect its Issuer Default Rating of 'B' with Positive Outlook and the notes' issue rating of 'B'.
However, the ratings impact of these amendments can be only assessed once there is greater clarity on Indika's future investment plans. Indika had a cash balance (excluding short-term investments and restricted cash) of IDR 2.5 triliun at end June 2009 and intends to continue expanding in the energy sector.