Petrosea writes off $28.8 Ilthabi debt

Indonesia-listed mining contractor PT Petrosea Tbk has written-off non performing receivable worth US$28.84 million to PT Ilthabi Bara Utama because it failed to make llthabi pay its debt.

Petrosea, wholy-owned subsidiary of PT Indika Energy Tbk, has filed the case to the South Jakarta District Court.

The transfer to district court hasn?t abolished the right of Petrosea to obtain the payment from Ilthabi Bara Utama,? Petrosea?s Director Hendrick U. Ibrahim said in a public statement to Indonesia Stock Exchange Monday.

Petrosea had entered into agreement with Ilthabi Bara Utama on June 29, 2007 to develop a greenfield coal fining project and construct supporting facilities located in East Kalimantan .

Due to the continuous failure of Ilthabi to meet the contractual payment terms on October 10 2008 , Petrosea initiated suspension of project activities.

This followed a request from Ilthabi to minimize work and go on standby, including suspension or termination of subcontractors.

By the time the project was suspended, physical progress had reached 79% completion. (kanti)