Macfarlanes leads as mining giant Bumi launches internal investigation
Macfarlanes has been drafted in to advise mining giant Bumi on an investigation into alleged financial irregularities in its Indonesian operations. The City firm is understood to have been instructed by the company yesterday (24 September), when Bumi announced the internal investigation into its Indonesian subsidiary PT Bumi Resources, in which it has a 29% stake.
September 25, 2012 at 06:11 AM
3 minute read
Macfarlanes has been called in to advise mining giant Bumi on an investigation into alleged financial irregularities in its Indonesian operations.
The City firm is understood to have been instructed by the company yesterday (24 September), when Bumi announced the internal investigation into its Indonesian subsidiary PT Bumi Resources, in which it has a 29% stake.
The investigation will look at alleged irregularities in the company's development funds, with millions of dollars thought to have been diverted and some funds' value written down to zero by the close of last year.
Announcing the investigation Bumi said: "An independent investigation has been commissioned to investigate the allegations on an urgent basis, and is to report to the board. The company also intends to contact relevant authorities in the UK and Indonesia, as appropriate, in respect of some of the allegations.
"An area of focus of the investigation will be the development funds of PT Bumi Resources Tbk. The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at 31 December 2011, except for one investment with a carrying value of $39 million in the consolidated financial statements."
Non-executive director of Bumi, Ari Hudaya, resigned yesterday after the probe was announced, with share prices in the company plummeting by around 25% by the end of the day.
The news comes after Berwin Leighton Paisner (BLP) and Slaughter and May advised on the $1bn (£632m) sale of a 24% stake in Bumi in February this year.
BLP advised the sellers, commodities trader Bakrie & Brothers and Indonesian investment company Long Haul Holdings, while Slaughters acted for the buyer, coal mining company Borneo Lumbung Energi and Metal.
Created by financier Nat Rothschild, Bumi has come under repeated scrutiny over the last year for poor corporate governance, flagged by Rothschild himself. The move saw him ousted as co-chairman from the company.
Much of the scrutiny over governance has related to one of Bumi's largest shareholders- the Bakrie family.
Meanwhile, Freshfields Bruckhaus Deringer and BLP took lead roles in June 2011 on natural resources giant Vallar's $2bn (£1.2bn) issuance of convertible bonds to acquire a 75% stake in Bumi Resources Minerals.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSingapore Litigators Shift Competitive Landscape as Another Senior Duo Sets Up Own Shop
Squire Patton Boggs Hires 7-Lawyer Team to Beef Up ESG Practice in Brussels
2 minute readSkadden, White & Case Guide Citigroup Demerger in Mexico
Trending Stories
- 1Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 2Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
- 3Meet the SEC's New Interim General Counsel
- 4Will Madrid Become the Next Arbitration Hub?
- 5‘Ripe for SCOTUS’: Ruling Creates Circuit Split on NLRB’s Expanded Monetary Remedies
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250