Timah gets plot of land as debt payment
Friday, July 25 2003 - 12:37 AM WIB
In the statement, Timah said BPUI had agreed to hand over a 176-hectare-plot of land in Bantar Gebang, Bekasi, east of Jakarta in repayment of a total of Rp 200.31 billion (US$ = Rp 8,195) in Timah's investment in BPUI.
In Late 1997, Timah made a short-term investment worth $22 million and Rp 61 billion (about $6.85 million) in BPUI because depositing money in banks at the time was deemed unsafe amid the severe financial crisis. But after three months, BPUI could only pay back $5 million, and defaulted on the remainder.
In late 2001, Timah complained to the South Jakarta court following a failed negotiation with BPUI on the debt problem. Later, it agreed to withdraw the lawsuit, after BPUI asked for a new negotiation.
When contacted on Thursday, Timah said that the deal was the best alternative offered by BPUI to settle the debt dispute.
"We are realize that land property is not our core business, but we will study it first," Pudji Samekto, Timah's assistant to corporate secretary, told Petromindo.Com.
Timah is one of the world's largest tin producers with the production capacity of around 48,000 tons per annum.
Earlier, the company president Thobrani Alwi said that Timah needed fresh capital to finance this year's exploration activities, which are expected to cost a total of $20 million. (robert)