Orpheus executes settlement agreement with former partner

By Ruli Setiawan

ASX-listed Orpheus Energy announced Thursday it has executed a settlement agreement with its former Indonesian partner Nugroho Suksmanto, under which the latter would have to pay a revised total amount of Rp 70 billion (about A$7 million) in monthly installments.

The company also said in a statement that it has withdrawn a bankruptcy petition against Suksmanto but retains the right to re-initiate proceedings should payment default occur.

As previously announced on March 30 2015, Orpheus initiated bankruptcy proceedings against Suksmanto to recover outstanding funds owed to the company since the announced and shareholder approved sale of Orpheus?s Indonesian assets in August 2014.

?The settlement agreement allows for monthly installments of Rp 20.8 billion Rupiah (~A$2.08M) to be paid by August 31, 2015. The balance of Rp 49.2 billion will then be paid in monthly installments of Rp 3.4 billion with a final payment of Rp 1.6 billion due on November 30, 2016,? Orpheus said.

As part of the settlement agreement, Orpheus has also been provided with additional security from Suksmanto's family (Noegroho Pranoto and Yohana Kurniastuti), in the form of a pledge over 1,073 shares (equivalent to 7%) owned by Noegroho Pranoto in an Indonesian property development company, PT Abadi Guna Papan (AGP) and a pledge over 578 shares (equivalent to 3.5%) owned by Yohana Kurniastuti in AGP. Among numerous developments, AGP owns the 28-storey office building where Orpheus?s Jakarta office is located in the Mega Kuningan CBD area.

However, the settlement agreement explicitly provides for Orpheus to re-initiate legal action or arrange for the sale of the 10.5 percent equity in AGP, should Suksmanto default on the repayments.

Orpheus in July of last year signed agreements with Suksmanto, PT Mega Coal and related parties regarding the sale of its Indonesian assets for total proceeds of approximately US$8.2million.

Editing by Reiner Simanjuntak