Nugroho seeks out of court settlement with Orpheus
Thursday, April 23 2015 - 02:03 AM WIB
Nugroho told the Central Jakarta Commercial Court that negotiations are underway with Orpheus for an out of court settlement. He added that he was also informed that the Australian firm would withdraw its lawsuit.
Orpheus commenced on March 26 bankruptcy proceedings against its former Indonesian partner Nugro as the latter has not been able to repay outstanding debt worth about US$7.5 million.
Orpheus in July of last year signed agreements with Nugroho, PT Mega Coal (owned by Nugroho) and related parties regarding the sale of its Indonesian assets for total proceeds of approximately US$8.2million.
Orpheus announced March 9, 2015 that after lengthy negotiations with its creditor PT Baraindo and also its debtor Nugroho, the company has executed a legally binding debt novation agreement. Under the terms of the agreement, Orpheus has paid PT Baraindo A$270,000 from the proceeds of a rights issue, and the A$792,100 balance of the debt owing to PT Baraindo has been assigned to Nugroho.
The company said in March that this means the company no longer have external debt. It correspondingly reduces the amount owed to Orpheus by Suksmanto to around US$7.5 million. (*)