UT appoints Rothschild to re-negotiate debts to anticipate failure to sell Berau Coal

JSX-listed heavy equipment maker PT. United Tractors (UT) had appointed NM Rothschild & Sons to re-negotiate its debt restructuring with creditors in case it would fail to raise money from the sale of its coal mining subsidiary PT. Berau Coal.

In its report to the Jakarta Stock Exchange released Tuesday UT said legally its agreement to sell its 60 percent stake at Berau Coal to PT. Intra Karsa Korporindo was void as the latter failed to meet obligations at the given deadline. However, in ealier interview with Petromindo.Com, UT corporate secretary Tjendrawati Waas said it was still open possibility for Intra Karsa to acquire Berau Coal if it could meet its commitments.

Industry sources said Intra Karsa has difficulty in raising fund to pay for Berau Coal?s shares, which, according to some sources, amounted around US$ 45 million.

UT also said it was seeking other possible buyers until year-end.

UT is desperately seeking fresh fund to pay for its debt that will mature by the end of this year.

UT has 60 percent stake in East Kalimantan based Berau Coal. (alex)