PT Timah threatens legal action against BPUI
Tuesday, December 11 2001 - 01:36 AM WIB
PT Timah Tbk has threatened to take legal action against state owned financing company PT Bahana Pembinaan Usaha Indonesia (BPUI) if the later continues to refuse to repay its debts to the state owned tin mining company, Bisnis Indonesia reported on Tuesday.
PT Timah?s legal consultant Todung Mulya Lubis said in Jakarta on Monday that a warning letter on the possible legal action was sent on December 10 and BPUI had eight days to answer.
?BPUI has shown no good faith in paying its debts. The company has failed to pay the loan interest for at least one or two years,? he was quoted as saying.
BPUI owes Rp 61 billion in local currency and US$17 million in foreign currency to PT Timah, which is now under its worst financial condition due to the collapse of tin prices in the world market. Todung said that as of September 30, the debts including its interest had increased to Rp 206 billion and $19 million. (*)