Asia Coal: ‘Hostile force’ aims to derail Berau notes restructuring

By Caroline Salls

Pittsburgh, June 2 – Asia Coal Energy Ventures Ltd. (ACE) said a “hostile force” might be planning legal action against PT Berau Coal Energy Tbk. and Berau Capital Resources Pte. Ltd., including a potential bankruptcy or Indonesian PKPU process.

ACE is the potential indirect owner of Berau.

According to an ACE news release, the legal action is aimed at destabilizing or destroying the proposed restructuring of the 12½% guaranteed senior secured notes due 2015 issued by Berau Capital Resources and the 7¼% senior secured notes due 2017 issued by Berau Coal.

ACE said it and the Sinar Mas group has every intention of working in close collaboration with an informal noteholders’ committee, other supporting noteholders and the legitimate representatives of Asia Resource Minerals plc, Berau Capital Resources and Berau Coal to defeat the launch of any legal process and to protect and preserve the proposed restructuring. ACE and backer Sinar Mas Group will also work in good faith with other supportive trade and working capital creditors to defeat any hostile actions and to preserve value for all legitimate stakeholders.

In a letter to contractors, working capital providers and other Beau stakeholders, ACE and Sinar Mas asked all contractors and working capital providers continue to work in harmony with Berau in ensuring that the business is run in as stable and normal a way as possible.

“We believe that any difficulties that are now being faced are temporary and that the long-term future of Berau is bright for all legitimate stakeholders,” the letter said.

“We therefore encourage all stakeholders to support Berau and not take any steps that might damage the business, including any enforcement of legal claims whether by way of PKPU or otherwise.”

If Berau is subjected to a hostile PKPU, ACE and Sinar Mas said the existing difficulties will increase, as will the risk of non-payment of current payables by Berau.

If it is successful in becoming the new steward of Berau, ACE said it will use “all reasonable endeavors to ensure that amounts owing to all legitimate contractors, working capital providers and other trade creditors of Berau will be settled in the ordinary course of business.”

ACE said it is also aware of differences between Pak Amir Sambodo and the management of Asia Resource Minerals, which owns 85% of Berau, and it looks forward to an early resolution for the benefit of all contractors, working capital providers and other trade creditors of Berau.

Asia Resource Minerals, formerly Bumi plc, is a thermal coal company based in London. Singapore’s Berau Capital Resources is a subsidiary of Berau Coal Energy Tbk., which is based in Jakarta.

© 2015 Prospect News.
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