Court approves application for Rinjani debt payment suspension
Thursday, August 31 2017 - 01:06 AM WIB
SGX-listed coal firm Resources Prima Group Limited said that the Jakarta Commercial Court has approved application for debt payment suspension filed by creditors of its East Kalimantan coal subsidiary PT Rinjani Kartanegara.
?Following a number of procedural court hearings in mid-August, the company wishes to update that, on 29 August 2017, Rinjani received a letter dated 28 August 2017 from the Commercial Court, Jakarta attaching the decision of the Commercial Court which, amongst others, declared that the application had been approved and that the suspension of payment period will be effective for a period of 45 days from 24 August 2017,? Resources Prima said in a statement on Wednesday.
The company said the next court hearing is scheduled for 9 October 2017 where a decision will be taken on the status of the suspension of payment (better known here as PKPU). The Commercial Court, Jakarta has appointed two persons as administrators to assist in the management of the business activities of Rinjani during the suspension of payment period.
PKPU is part of Indonesia's 2004 Bankruptcy Law and provides creditors and debtors with an avenue to avoid liquidation bankruptcy. A PKPU gives a debtor the opportunity to prepare, negotiate and submit a composition plan to its creditors for their approval. The PKPU can be either initiated by the debtor or creditors.
Resource Prima said earlier that Rinjani has stopped mining operations since June 23, due to inability to meet financial obligation to PT Cipta Kridatama, its mining contractor.
The company said Rinjani was unable to pay contractor PT Cipta Kridatama on time as coal production and sales were reduced due to rainfall and dewatering problems at the mine.
Editing by Reiner Simanjuntak