Court imposes moratorium on Berau creditors
Wednesday, July 8 2015 - 04:41 AM WIB
LSE-listed mining company Asia Resource Minerals Pls (ARMS) said that the Singapore High Court has imposed moratorium on creditors of its subsidiary Berau Capital Resources Ptd Ltd planning legal action against the latter and other subsidiaries including IDX-listed coal giant PT Berau Coal Energy Tbk until next year to allow more time to complete the restructuring of maturing debt.
?On 7 July 2015, the High Court of the Republic of Singapore made an order ? that a moratorium be imposed against any creditor of Berau Capital Resources Pte. Ltd commencing or continuing any action or proceedings for the enforcement of any rights against Berau Capital, its parent company, PT Berau Coal Energy Tbk or the guarantors of the 2015 notes, without the consent of Berau Capital or the sanction of the Court,? ARMS said in a statement Tuesday.
Singapore-registered Berau Capital is the issuer of the US$450 million aggregated principal amount of 12.5 percent guaranteed senior secured notes due July 8, 2015 which are guaranteed by, amongst others, PT Berau Coal Energy Tbk and certain subsidiaries of ARMS.
The relevant subsidiaries of ARMS are PT Berau Coal, PT Armadian Tritunggal, Empire Capital Resources Pte Ltd, Winchester Investment Holdings PLC, Aries Investments Limited, Seacoast Offshore Inc., Maple Holdings Limited, PT Banua Karsa Mitra and PT Energi Bara Sarana.
?The moratorium is effective immediately and shall continue in force until 4 January 2016. The order is an important element of the note restructuring process. The moratorium granted pursuant to the order is intended to facilitate the progression and implementation of the in-principle terms of restructuring that were previously agreed with an ad hoc committee of note holders,? ARMS said.
?The company intends to take immediate steps to apply for recognition of the order in the United States of America,? it added.
ARMS is currently in the process of being acquired by Asia Coal Energy Ventures Ltd (ACE), which is backed up by Indonesia?s well-diversified Sinar Mas Group.
Editing by Reiner Simanjuntak