Resources Prima?s coal unit declared bankrupt
Tuesday, October 10 2017 - 12:58 AM WIB
SGX-listed Resources Prima Group Limited said that the Jakarta Commercial Court had declared its East Kalimantan coal subsidiary PT Rinjani Kartanegara bankrupt effective from October 9.
Resources Prima said in a statement on Monday that the court?s ruling came following a rejection by majority of Rinjani?s creditors over a proposed debt restructuring plan.
?Following a presentation and verification meeting with creditors on the composition plan prepared by Rinjani (the Composition Plan), it was confirmed during a court hearing at the Commercial Court Jakarta on 9 October 2017 that the Composition Plan had been rejected by a majority of Rinjani?s creditors. As such, the Commercial Court Jakarta ruled that the suspension of payment period had ended and Rinjani will enter bankruptcy with effect from 9 October 2017,? the statement said.
The Commercial Court Jakarta has appointed two curators, Tirta Cakindra Setiayedi and Dwiana Miranti, to administer the bankruptcy estate and a supervisory judge to supervise the bankruptcy process. As of 9 October 2017, the board of directors of Rinjani shall have no authority to administer or represent Rinjani.
?Rinjani?s entering into bankruptcy is expected to have a material impact on the consolidated net tangible assets per share and consolidated earnings per share of the Group for the financial year ending 31 December 2017,? Resources Prima said.
Rinjani has stopped its coal mining operations since June 23, due to inability to meet financial obligation to PT Cipta Kridatama, its mining contractor. Rinjani was unable to pay contractor PT Cipta Kridatama on time as coal production and sales were reduced due to rainfall and dewatering problems at the mine.
Editing by Reiner Simanjuntak