Berau Coal Energy
| Company type | Public |
|---|---|
| IDX: BRAU | |
| ISIN | ID1000116502  |
| Founded | 26 April 1983 |
| Headquarters | Jakarta, Indonesia |
Key people | Bob Kamandanu, President Commissioner Amir Sambodo, President Director, Deswandhy Agusman, Vice President Commissioner |
| Revenue |  US$507 million (2012)[1] |
| Website | www |
PT Berau Coal Energy Tbk is Indonesia's fifth largest coal producer.[1]
History
[edit]Berau Coal Energy was created in 1983, following the signing of a contract with the Indonesian government as sole mining contractor within the Berau regency of East Kalimantan. Production began in 1994.[2]
Production
[edit]Berau Coal operate three active mines (Lati, Sambarata and Binungan) at a single site in East Kalimantan. Estimated resources of about 2.6 billion tons, with probable and proven reserves estimated at 512 million tons (mt),[3] lie within a single concession of around 118,400 hectares.[4]
All three mines[5] produce thermal coal,[6] using conventional open pit mining techniques,[2] primarily to supply the Chinese market.[1]
Controversies
[edit]Berau Coal became part of Vallar plc, British financier Nathaniel Rothschild's £700m cash shell, in July 2010.[7]
In 2013, it was variously reported that $173 million had allegedly gone "missing" or that "mysteriously vanished" or that a withdrawal was "unauthorised" from Berau Coal under Rosan Roeslani's leadership. Roeslani disputed the claims.[8][9][10][11][12][13]
As part of an effort to restructure and take control of the business, Rothschild offered to inject US$100 million into Berau Coal[14] and offered sign a restructuring support agreement with creditors in February 2015.[15]
After a series of internal disputes, board room battles and court inquiries into "financial irregularities" at Berau Coal, Amir Sambodo agreed to resign in March 2015 as president of Berau. However, he failed to relinquish the position and refused to allow Asia Resource Minerals's chief financial officer, chief mining officer or his successor into the head office of Berau. For a while, executives acting on behalf of Rothschild only had limited access to Berau's accounting systems and bank account information.[16]
The Widjaja's Sinar Mas subsidiary company, Asia Coal Energy Ventures, spearheaded by the 33-year-old Fuganto Widjaja, together with Argyle Street Management Ltd., countered on 7 May 2015 with a cash offer and alternative recapitalisation plan involving a $150 million cash injection and a restructuring support agreement similar to the one offered by Rothschild in May.[14] In response Rothschild gave up his long battle for ARM and agreed to sell his 17.2% stake in June 2015.[17]
Rothschild's holding company later commented on the affair that "This will be our first and last investment in Indonesia’s coal sector"[18]
Defaults
Berau Capital Resources Pte issued US$450 million worth of 12.5% guaranteed senior secured notes, in 2015. PT Berau Coal Energy also issued US$500 million worth of 7.25% guaranteed senior notes in 2017. While these were to be restructured under an agreement with bondholders,[19] the company later did not proceed with the deal. Both the 2015 and 2017 notes are currently in default. Since July 2015, the Berau Group has brought 4 separate rounds[20] of scheme of arrangement / moratorium proceedings,[20] with terms which have been described as "frankly insulting" at a time when global coal prices had doubled.[21][22] None of the schemes has succeeded.[23]
Suspension from the IDX
Berau Coal Energy has been delisted from the IDX since 16 November 2017, following multiple suspensions over the course of the last 2 years and failure to submit timely annual reports and financial statements since 2014.[24]
New York Court Case
In April 2019, following the default of two bonds worth about US$1 billion, the Widjaja family was taken to court in New York by investors in Berau coal, seeking damages of US$165M plus interest. Legal advisers for the plaintiffs, a New York hedge fund, claimed in court that many of the tactics employed by the Widjaja family during the APP restructuring were being deployed again. The Financial Times noted that the case came as "concerns build over Indonesia’s political and economic environment".[25]
See also
[edit]References
[edit]- ^ a b c Indonesia Investments Berau Coal Energy Retrieved February 2015
- ^ a b Indonesian Coal Book, 2004–2005, P52-55 Retrieved February 2015
- ^ Moody's Investors Service "Berau's proposed maturity extension of 2015 notes likely a distressed exchange" Retrieved February 2015
- ^ The Jakarta Post, Sept 2013, "Berau to invest $300m to boost production" Retrieved February 2015
- ^ "Resource and Quality". Berau Coal Energy | Resource and Quality.
- ^ GmbH, finanzen net. "PT Berau Coal Energy Tbk Company Profile | Markets Insider". Business Insider. Archived from the original on 29 April 2019. Retrieved 22 November 2018.
- ^ "£707M Vallar float exceeds". express.co.uk. 10 July 2010. Retrieved 28 April 2024.
- ^ "Rosan Roeslani emerges as surprise buyer of Inter Milan". The Telegraph (UK). 15 October 2013. Retrieved 6 June 2015.
- ^ "Former Bumi owner wins legal battle to recoup £110m from ex-director". The Guardian. 31 December 2014. Retrieved 28 April 2024.
- ^ "Breakthrough in pursuit of former Bumi director's assets". The Telegraph. 4 March 2014. Retrieved 28 April 2024.
- ^ "Nat Rothschild sells Asia Resource Minerals stake". Financial Times. 8 June 2015. Retrieved 28 April 2024.
- ^ "Bumi Says Roeslani Claims He Doesn't Owe Company Funds". Bloomberg. 4 December 2013. Retrieved 28 April 2024.
- ^ "With founder on hook for $173M, private equity company plans media asset sale". Nikkei Asian Review. 11 February 2015. Retrieved 28 April 2024.
- ^ a b MacDonald, Alex (8 June 2015). "Nat Rothschild Agrees to Sell ARMS Stake". The Wall Street Journal.
- ^ "Berau battle heats up as Raiffeisen sells stake". Reuters. 8 May 2015.
- ^ "Company suspends shares trading after former CEO refuses to leave head office". The Telegraph. 22 May 2015.
- ^ "Nat Rothschild Agrees to Sell ARMS Stake". The Wall Street Journal. 8 June 2015.
- ^ Wilson, James; Chilkoti, Avantika; Aglionby, John (8 June 2015). "Nat Rothschild gives up long battle for Asia Resource Minerals". Financial Times. Retrieved 15 February 2023.
- ^ "Indonesia's Sinar Mas to restructure Berau Coal's $950 mln debt-Investor Daily". Reuters. 14 July 2015.
- ^ a b Debtwire, ‘Berau creditor Argentem loses battle to block Singapore scheme meeting, but wins on class issue’, 20 February 2018
- ^ "Berau's low-brow offer is pause for thought | IFR". IFRe.
- ^ GmbH, finanzen net (18 December 2023). "Coal PRICE Today | Markets Insider". Business Insider.
- ^ "Release of Claims against Third Parties" (PDF).
- ^ "Berau Coal will be delisted on November 16". IDN Financials. 18 October 2017. Archived from the original on 22 November 2018. Retrieved 22 November 2018.
- ^ Weinland, Don (15 April 2019). "US hedge funds face court battle with Indonesia mining group". Financial Times. Retrieved 29 April 2019.