Intra Karsa might fail to buy UT?s 60% stake in Berau Coal
Wednesday, October 2 2002 - 03:35 AM WIB
"It is almost certain that PT Intra Karsa would fail to pay the initial payment of US$5 million for the purchase of Breau?s 60 percent stake which are all worth about US$45 million," a source told the daily.
UT?s corporate secretary Tjandra Waas said earlier that UT might cancel the deal due to a failure of PT Intra Karsa to meet the term and condition in the acquisition of its 60 percent share in Berau Coal.
According to him PT Intra Karsa has been given until next week to fulfill the requirements, if not, the deal will be cancelled.
In addition to Berau, UT will also sell its stake in another coal producer PT Pamapersada to raise fresh funds to finance its debt of about US$268 million to its creditors. UT expects to gain $43 million from the sale of its stake in Berau Coal. (*)