Court approves UCI debt restructuring agreement

The court has approved the proposed debt settlement agreement between coal miner PT United Coal Indonesia (UCI) and its creditors, Bisnis Indonesia reported on Thursday.

Judge Titik Tedjaningsih was quoted by the paper as saying that the debt settlement agreement signed by the company and the creditors is now legally binding.

Debt-troubled UCI has recently reached agreement with about 80 percent of its creditors for a postponement of debt repayment, sparing the company from being declared bankrupt.

UCI, set up in 2006, is engaged in coal mining business in East Kalimantan and Central Kalimantan. One of its four mines is the 2,000-hectare Palaran mine in Sanga-Sanga, East Kalimantan, with estimated JORC reserves of 11 million tons. (*)