Tambang Batubara Bukit Asam IPO plans threaten by trouble in facility

The initial public offering (IPO) of the state owned coal-mining firm PT Tambang Batubara Bukit Asam is being threatened by a disruption in its coal facility in the Air Laya area in Bukit Asam, South Sumatra.

Bukit Asam was scheduled to offer list its shares on the Jakarta and London stock exchanges in June this year.

But a disruption in the development of one of its facilities may discourage investors to buy into the shares.

A source said that the disruption was caused by problems faced by its contractor PT Adiputera with Bank Universal, the latter's creditor.

Bukit Asam stopped making payment for Adiputera's works, while the latter stop doing its job because the former didn't make the payment.

Earlier report said that Bukit Asam would only make the payment if Adiputera had completed a certain percentage of its job. Bukit Asam also said that under an earlier debt restructuring agreement between Adiputera and Bank Universal, Bukit Asam would only make the payment to the bank. (*)