Mar 2, 2010

APOL owner sells coal unit to UNTR

PT Pamapersada Nusantara, Indonesia largest coal mining contractor that is wholly owned by PT United Tractors Tbk (UNTR), on January 14 2010 signed shares sale agreement in a bid to acquire 30% stakes in two coal mining companies PT Asmin Bara Bronang and PT Asmin Bara Jaan. 
Pamapersada has signed shares sale agreement with two shares holders of both companies PT Mandira Sanni Pratama and PT Andalan Teguh Berjaya.
Both coal mining companies own coal concession areas in Kapuas and Murung Raya, Central Kalimantan.
The acquisition deal is worth US$40.1 million and Rp75 million. 
In January, Pamapersada paid US$11.6 million in cash and put US$28.6 million in escrow account which will be drawn down maximum in the next 12 months based on shares sale agreement.
In January 2010, Mandira Sanni Pratama was controlling share holder of a wounded sea transportation company PT Arpeni Pratama Ocean Line Tbk (APOL). PT Ayrus Prima owned 21.04% stakes, Morgan Stanley & Co held 9,81%, and Melon S/A Cundill Recovery FD owned 8.30%, DEG 8.67%, and public holders held the remaining.
Melon S/A Cundill has started to dispose some stakes in Arpeni and switching into PT Bakrie & Brothers Tbk. The last announcement said that Melon S/A still owns 6% in Arpeni.  
In my opinion, APOL founder is striving to obtain cash in order to settle bank loan and derivative products agreements. 
Arpeni is in negotiations with third parties in a bid to convert obligation on derivative contracts of Rp504.9 billion into debts.
The company, in a public announcement to Indonesia Stock Exchange, revealed that it hopes the conversion of net current obligation worth Rp504.9 billion into debts is in line with capacity of debt payment.
Arpeni in September last year was suffering a profit drop of 7,045.79% as well. The company's bottom line was in red by posting net loss of Rp561.22 billion at the end of third quarter last year from Rp8.08 billion of net profit a year before. Earning per share tumbled from Rp3 to Rp187. Loss on derivative of Rp420.78 billion was the culprit.
Pefindo downgraded the corporate rating of Arpeni idSD from idBB following the suspension of the principal installment to several creditors. 
Currently, APOL is negotiating with lenders of its secured loans to acquire approval for a payment standstill including deferral of principal installment until March 31, 2010.
In its September 2009 audited financial statements, as of January 4, 2010, APOL is in breach of its loan covenants and has not acquired formal waiver from its creditors. Hence creditors have the right to declare default and ask for repayment acceleration of the outstanding loans. However, the company has not received any notification from its creditors.

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