United Tractors sets deadline for Berau Coal divestment
Tuesday, July 9 2002 - 03:15 AM WIB
The management of publicly listed PT United Tractors Tbk said that the divestment of the 60 percent of the company?s subsidiary PT Berau Coal should be carried out in August this year. If not, the company would seek another financial sources in financing its debt.
Sources said that if PT United Tractors failed to carry out the divestment in August, the entire divestment program would be cancelled. As the consequence, the company would seek another alternatives in repaying its debts.
According to agreements with creditors, PT United Tractors will pay its debt worth US$89.5 million by the end of this year with proceeds from the divestment of its shares in PT Berau Coal and with dividends from PT Pamapersada Nusantara.
United Tractors, a subsidiary of automotive giant PT Astra Internasional, has yet unveiled what kinds of financial sources it would use to repay its debts, if the divestment of Berau Coal is cancelled. (*)