United Coal told to revise debt settlement offer

Creditors of coal miner PT United Coal Indonesia (UCI) have demanded the company to revise its debt settlement offer among others by listing subsidiaries to be sold to repay debts, Kontan reported on Wednesday.

The paper said, quoting plaintiffs? lawyer Bagus Wicaksono, the creditors also objected to the company?s proposal for settling the debts in two years. The creditors wanted the debts to be settled sooner.

UCI, set up in 2006, is engaged in coal mining business in East Kalimantan and Central Kalimantan. One of its four mines is the 2,000-hectare Palaran mine in Sanga-Sanga, East Kalimantan, with estimated JORC reserves of 11 million tons.

The company owes a combined Rp 219.9 million in debts to its suppliers/contractors CV Eksis Jaya and CV Satria Duta, and another Rp 103.7 million to five workers.

The two contractors and one of the workers have filed a bankruptcy petition against the company at Jakarta Commercial Court. (*)