Berau Coal gets creditors? approval to reschedule debt payment

PT Berau Coal, a subsidiary of PT United Tractors Tbk (UNTR), has received an approval from its creditors to reschedule the payment of its debts from 2004 to 2008, Bisnis Indonesia reported on Saturday.

UNTR said on Thursday that the agreement on the rescheduling of Berau's remaining debts of about US$29.15 million was signed on May 27. It was the second time; Berau signed a debt rescheduling agreement with its creditors.

Berau signed the first rescheduling agreement in on April 29, when total outstanding debts reached about US$40 million. But the company suffered a technical default in December last year, halting the payment to its five creditors including Mizuho Corporate Bank Ltd, SMBC, UFJ Bank Limited, the Bank of Taiwan and Lehman Brothers Commercial Corporation Asia Ltd.

In the first debt rescheduling agreement, Berau was required to pay its debt in ever six months, with an interest rate of between 1.5 percent and 3.5 percent above the Singapore Banks? Offered Rates (SIBOR).(*)