Berau Coal reaches restructuring deal

Coal company PT Berau Coal has reached a restructuring agreement with its creditors over some US$40 million in debt, according to a news release from the Jakarta Stock Exchange.

Berau Coal is a unit of the publicly listed PT United Tractors.

The statement said that under the restructuring deal, signed in March, the debt was stretched over five years until 2004.

Berau Coal paid an initial payment of $175 thousand when it signed the restructuring deal, and it would amortize the debt principal for every six months starting with a small amount and gradually higher in accordance with the expected increasing business volume of the company.(*)