Jun 28, 2010

Petrosea writes off Ilthabi debt

Coal mining contractor PT Petrosea Tbk (PTRO) has written-off non performing receivable worth US$28.84 million to PT Ilthabi Bara Utama due it failed to make Ilthabi pays its debt.
Petrosea, wholy-owned subsidiary of PT Indika Energy Tbk (INDY), has filed the case to distric court of South Jakarta.
"The transfer to distric court hasn't abolished right of Petrosea to obtain the payment from Ilthabi Bara Utama," Petrosea's Director Hendrick U. Ibrahim said in a public statement to Indonesia Stock Exchange today.
Petrosea had entered into agreement with Ilthabi Bara Utama on June 29 2007 to develop a greenfield coal mining project and construct supporting facilities located in East Kalimantan.
Due to the continuous failure of Ilthabi to meet the contractual payment terms on October 10 2008, Petrosea initiated suspension of project activities.
This followed a request from Ilthabi to minimize work and go on standby, including suspension or termination of subcontractors.
By the time the project was suspended, physical progress had reached 79% completion.  

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