Orpheus says former partner has yet to repay outstanding debt
Friday, April 29 2016 - 08:04 AM WIB
ASX-listed Orpheus Energy said Friday that its former Indonesian partner, businessman Nugroho Suksmanto, has yet to pay any of the outstanding funds owed to the company.
The company said in a statement that according to a settlement agreement, as at March 31, 2016, Rp 45.6 billion plus interest of Rp 3.605 billion (total Rp 49.205 billion or A$4.9 million) remains due.
Suksmanto and Orpheus agreed to a settlement agreement in May of last year to avoid bankruptcy proceeding, under which the former had agreed to repay his debt to the latter through an 18-month installment process starting July 2015 using export proceeds from a South Kalimantan mine. In case it is not enough, Suksmanto also pledged his personal assets including land in Jakarta and a 10.5 percent stake in property development company PT Abadi Guna Papan (AGP).
?Given Suksmanto?s continuing breach of the settlement agreement, Orpheus, as the pledgee under the shares pledge agreements is entitled to sell the pledged shares, on behalf of the pledgors based on powers of attorney to sell shares and consents to transfer issued by the pledgors, to recover the outstanding funds owed to Orpheus. Over the last three months, Orpheus has continued to directly, and through its lawyers, conduct discussions with numerous potential acquirers of the AGP shares,? Orpheus said in a statement.
Additionally, Orpheus said Suksmanto continues to confirm that he is in advanced negotiations to sell one of his other properties (separate to the properties owned by AGP), and if this sale eventuates, Orpheus will be paid a large portion of the outstanding amount owed.
?Notwithstanding this activity, Orpheus has now obtained a final piece of documentation required for the lodgement of a formal Police Report under Indonesian law, and if the company does not receive the funds it is owed in the near future, Orpheus will instruct its lawyers to lodge the formal police report,? Orpheus said.
Orpheus in July of 2014 signed agreements with Suksmanto, PT Mega Coal (owned by Suksmanto) and related parties regarding the sale of its Indonesian assets for total proceeds of approximately US$8.2million.
Editing by Reiner Simanjuntak