Saturday, August 8, 2015

Indonesia's Berau Seeks To Extend Debt Moratorium To U.S.


Mon., August 3, 2015
A unit of Indonesian coal miner PT Berau Coal Energy Tbk has filed a petition to have a debt moratorium granted by a Singapore court recognized in the United States, in a move to stave off creditors, Reuters reported. On July 7, the Singapore High Court imposed a moratorium preventing any creditor of Berau Capital Resources Pte Ltd from enforcing its rights against Berau Capital, its parent company or the guarantors of Berau Capital's $450 million bond. The moratorium, which lasts until Jan. 4, effectively bought time for Berau to negotiate with bondholders. On July 10, Berau Capital filed a petition to have the moratorium order made by the Singapore court "extended to other jurisdictions pursuant to Chapter 15 of the United States Bankruptcy Code," Berau said in a stock exchange filing on Friday. In a separate action, PT Cakra Sinergi Investama has initiated bankruptcy proceedings at a Jakarta court against another unit of Berau Coal Energy, PT Berau Coal, over alleged unpaid debts.

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