Berau Coal defaults debt payment

East Kalimantan-based coal producer PT Berau Coal, which has been in technical default in its debt payment since December 2002, is seeking another rescheduling of its debts to its seven creditors, sources said as reported by Bisnis Indonesia on Monday.

"Berau?s debts underwent rescheduling some time ago, but in December, the company failed to repay the debts as scheduled," the source said, adding that Berau, a subsidiary of publicly listed PT United Tractors and its seven creditors were working on the second scheduling of the company?s debts with the help of its financial consultant Sumitomo Mitsui.

Berau?s spokesman, however, said he did not know about the rescheduling of the company?s debts. "Please ask the management of UT, if you want to get information about the debt rescheduling," he added.

Berau?s debts were rescheduled for the first time in March 29, last year under which the company was required to pay debt installment for every six months beginning 2000. The interest rate of the debt payment was based on the three-month Singapore Banks Offered Rates (SIBOR) plus a premium of 1.5% and 3.5%). The amount of the debt that must be settled in 2000 totaled US$39.3 million and in 2001 the amount reached $35 million.

Berau Coal which operates around 121,000 hectare mining sites in Berau regency, East Kalimantan, is 60 percent owned by Astra Internasional?s subsidiary PT United Tractors, 30 percent by Armadian Tritunggal and 10 percent by Japan trading powerhouse Nissho Iwai.

Early last year Astra opened a tender to sell United Tractors? 60 percent stake in Berau but no deal had so for been made. (*)