BPUI repays Timah with a plot of land<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
After a five-year dispute, state-owned mining company PT Timah
\nwas able to retrieve its investment from PT Bahana Pembinaan
\nUsaha Indonesia (BPUI), the troubled state-owned investment
\ncompany.<\/p>\n
In a report to the Jakarta Stock Exchange on Thursday, Timah,
\nthe world's largest integrated tin producer, said BPUI agreed to
\nsettle its US$17 million and Rp 61 billion (about $7 million)
\ndebt through a debt-to-asset swap arrangement.<\/p>\n
Under the agreement, BPUI will surrender a 1.76 million
\nsquare-meter plot of land Bantar Gebang, Bekasi, West Java.<\/p>\n
Timah public relations official Pudji Samekto told The Jakarta
\nPost a debt-to-asset swap settlement was the only way the company
\nwas able to recoup its investment from the cash-strapped BPUI.<\/p>\n
\"Well, there was no other option. We are lucky just to get the
\nprincipal back because we almost got nothing, as BPUI is also
\nobliged to repay huge debts to other creditors,\" said Pudji.<\/p>\n
Timah said it had not decided what to do with the land as the
\ncompany was currently in need of cash to finance its $20-million
\nexploration plans.<\/p>\n
After news of the deal, Timah shares decline Rp 25 to Rp 725
\namid an overall weak market sentiment.<\/p>\n
The dispute between Timah and BPUI began in 1998 when Timah
\nmade a short-term investment of $22 million and Rp 61 billion
\nthrough the purchase of BPUI promissory notes.<\/p>\n
After three months, BPUI was only able to pay back $5 million,
\ndefaulting on the remainder.<\/p>\n
Timah attempted to recoup its money several times, filing a
\nnumber of bankruptcy suits against BPUI between 1998 and 2001.<\/p>\n
The company was also competing with other BPUI creditors
\nattempting to recoup their investments.<\/p>\n
The company suffered serious money woes during the tenure of
\nSudjiono Timan, BPUI's president between 1994 and 2001.<\/p>\n
According to state prosecutors, BPUI suffered losses of at
\nleast $240 million during these years.<\/p>\n
Sudjiono was accused of channeling the company's money to a
\nnumber of influential businessmen. Sudjiono was brought to trial
\nin September 2002 for corruption, but was eventually acquitted on
\nall charges.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpui-repays-timah-with-a-plot-of-land-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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