PRESS RELEASE: Legal action against KPC puts divestment plans at risk
Monday, March 25 2002 - 07:22 AM WIB
Source: press release from KPC, 25 March 2002
KPC?s previously announced agreement with the Government of Indonesia to offer 51% of KPC shares to Indonesian parties by 31st March 2002 has been seriously put at risk by further legal action.
On 18 March 2002 KPC agreed with the Government of Indonesia to offer 51% of KPC shares to Indonesian parties. Under that agreement, the Government of Indonesia and KPC agreed that the offer would proceed as soon as all legal actions related to KPC?s divestment obligations had first been withdrawn.
On 21 March 2002, however, further legal action was taken by the lawyers of Provincial Government of East Kalimantan when attachment orders were granted by the District Court of South Jakarta over the shares in KPC. The attachment orders will place the shares in KPC under the control of the Court and came without prior notice. As long as the orders are in place, KPC cannot complete its divestment offer and transfer shares to Indonesian parties.
The attachment orders are in addition to other attachment orders previously granted by the District Court of South Jakarta dated 12 March 2002. These orders seek to attach shares and interests relating to other assets in Indonesia held by the shareholders in KPC.
KPC and the affected parties are filing urgent applications to have these attachment orders removed.
KPC remains willing to make the share offer to Indonesian parties as soon as all the litigation is withdrawn.
For further information, please contact: Lex Graefe, Rio Tinto, phone: (021) 5274208, fax: (021) 5274270; or John O?Reilly, BP, phone: (021) 7854 8417, fax: (021) 7854 9069. (*)