PRESS RELEASE: PT United Tractors Tbk has entered into arrangement to sell PT Berau Coal
Wednesday, April 7 2004 - 12:29 PM WIB
UT has agreed to sell its shares in Berau to IIC pursuant to its obligations under the Creditors Agreement, which became effective on 27 February 2004. The Creditors Agreement, as part of the debt restructuring of UT, requires the Company to continue to use its best efforts to dispose of its shares in Berau from which the net proceeds must be utilized for prepayment of the Company?s debt. The Creditors Agreement also requires UT to complete a rights issue from which not less than the greater of (a) 80% of the net proceeds and (b) USD 60 million of the net proceeds, must be used for a debt repurchase program.
The Company believes that the debt reduction, which will be achieved through both the sale of Berau and the rights issue, will further strengthen UT?s capital structure and enable management to focus on the construction machinery and mining contracting divisions of the UT Group.
Closing of the transaction is subject to a number of conditions being met, some of which are subject to outside parties over which UT does not have full control.
The conditions for completion include, among other things, obtaining approval from UT?s shareholders through an Extraordinary General Meeting, consents from creditors of the Company and Berau, and consents from the existing shareholders of Berau on the pre-emptive rights. Further details of the transaction will be made available as part of the shareholder approval process, in accordance with the prevailing regulations. (end of release)
For further information, please contact:
- Mark Florance, PT Rothschild Indonesia at +62-21 515-3588
- Buntoro Muljono, PT United Tractors Tbk at +62-21 460-0069