https://www.engineeringnews.co.za

Indonesian Court approves Straits plan

13th October 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – The Indonesian Commercial Court has approved a settlement plan put forth by a subsidiary of ASX-listed Straits Resources.

In January this year, the Indonesian arm of Straits, and the owner of the Mt Muro gold project, declared voluntary bankruptcy, after PT Indo Muro Kencane (PT IMK) failed to secure a buyer for the project.

The Mt Muro operations were shut after PT IMK failed to progress the mine to a cash positive status. The team had implemented a number of positive measures, including the redesign of the mine plan to reduce waste movements without affecting gold production.

However, a number of unforeseen challenges had impacted on the timing of the Mt Muro project becoming cash-flow positive, including the falling gold price and the impact of illegal miners.

The Court-approved settlement plan now gave ownership of PT IMK to its creditors, while the Straits subsidiaries that hold all the shares in PT IMK would be transferred to a special purpose vehicle that would be held in trust on behalf of the creditors.

This process would likely be completed within two weeks, after which Straits and its subsidiaries would have no ongoing obligations to either the creditors or the entities that held shares in PT IMK.

“This is a significant outcome for both Straits and the creditors of PT IMK and is the result of more than eight months of discussion and negotiation among Straits, PT IMK, the administrator and the creditors,” said Straits executive chairperson Andre Labuschagne.

“The implementation of the settlement plan is another key deliverable achieved in the ongoing turnaround of Straits and now enables Straits to focus solely on maximising value from its Australian assets, particularly the Tritton copper operations, in New South Wales."

The finalisation of the settlement plan overrides the voluntary bankruptcy.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

SafeQuip
SafeQuip

SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...

VISIT SHOWROOM 
The Beneficiation Academy
The Beneficiation Academy

The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.046 0.956s - 140pq - 2rq
Subscribe Now