UT says Berau Coal divestment deal completely off

JSX-listed heavy equipment maker PT. United Tractors Tbk.(UT) said on Tuesday that it had dropped deal to sell its 60 percent stakes in East Kalimantan-based coal mining firm PT. Berau Coal to local consortium PT. Intra Karsa Korporindo after the consortium failed to meet required conditions, a UT official said.

?Deal with Intrakarsa had completely gone off after it failed to respond to latest deadline December 15,? said UT president Hagianto Kumala in a public expose in Jakarta.

In a bid to pay for maturing debts, UT had reached agreement to sell its entire stake in Berau Coal in August this year. Intra Karsa failed to make payment at the specified schedule, making the deal legally off. But UT still gave chance to Intra Karsa to complete the deal.

Hagianto said with the failure to close the deal, UT will not seek for new buyers until March next year, when UT creditors decide on debts restructuring scheme.

?If the restructuring enables UT to pay debts from operation-generated cash, then there will be no immediate needs to sell Berau Coal,? he said.

Bureau Coal is one of Indonesia?s top coal producers. Other shareholders of the company are Armadian Tritunggal with 30 percent and Japan?s trading powerhouse Nissho Iwai with 10 percent. (robert)