Berau?s debt restructuring plan approved by creditors

Coal producer PT Berau Coal has received an approval from its creditors to reschedule the payment of its debt worth about US$29.15 million until 2008, Bisnis Indonesia reported on Monday. The rescheduling would be the second made by company after the Kalimantan-based coal producer defaulted the payment in December, last year.

"The debt rescheduling plan would be soon concluded," said Thomas H. Aslim, the investors relations manager of publicly listed United Tractors, the majority shareholder of the coal producer. He was, however, reluctant to unveil the names of the shareholders.

Under the first debt rescheduling agreement, Berau was allowed to install its debt every six months beginning 2000 to 2004. The interest rate of the loan, under the debt rescheduling agreement in March 29, was based on the average rate of Singapore Offered Rates (Sibor) with a premium of between 1.5 percent and 3.5 percent.

In 2000, the company?s total debts reached US$39.3 million and in 2001 in the total amount of the debt declined to US$35 million.

United Tractors planned to sell its 60 percent share in PT Berau last year to PT Intra Karsa but it was delayed after PT Intra failed to settle the payment. Sources said that Intra backed off due to the high amount of the company?s debt (*)