Sunday, 23 March 2014

BERAU CONFLICT WITH ROSAN AT THE EDGE OF ARBOTRATION



Conflict between PT Berau Coal Energy Tbk (BRAU) with former President Director of BRAU, Rosan Perkasa Roeslani, becomes more exciting and full of twists. The dispute began when Rosan Roeslani was accused of embezzling approximately USD 173 millions of fund while serving as President Director of PT Berau Coal Energy, Tbk. Some of these funds were placed in Chateu Asset Management.

This problem began when Roslan intended to pay compensation in the form of cash and assets in the form of 49% stock of Asian Bulk Logistics (ABL) and 600 hectares of land owned by PT Borneo Prapatan Lestari. Meanwhile, Asia Resources did not acknowledge the appraisal of KPMG Corporate Finance Pte Ltd on ABL because Rosan unilaterally appointed KPMG. While, the total compensation is USD 173 million in cash and assets. Apparently, Rosan did not pay until December 26, 2013. The situation is exacerbated because Rosan was also delinquent in initial repayment (recovery agreement) of approximately USD 30 million.

BRAU was preparing to submit to submit formal charges (formal statement of claim) to Rosan in order to fulfill the obligation to repay funds worth USD 173 million, a compensation for financial irregularities that occurred during his tenure as President Director of BRAU. The charges will also expand the scope of payment liability that must be met by Rosan.

On 8 November 2013, BRAU and its parent company, Asia Resources Minerals Plc (ARM), formerly Bumi Plc, has sent a notice of arbitration through the Singapore International Arbitration Centre (SIAC). The arbitration material at that time only includes Rosan’s obligation to meet the initial payment worth USD 30 million to BRAU. Because Rosan has failed to meet the initial payment due on 26 September 2013.

But, Rosan proposed a new argument which claims that the obligation has been extinguished. “Therefore, the arbitration process will be expanded to cover all payment obligations of RR (Rosan Roeslani) worth USD 173 million. Now, the lawsuit continues when Rosan did not fulfill the agreement and obligations. Raden Curt Eko Santoso Budianto as President Director of PT Berau Coal Energy Tbk (BRAU) said that BRAU and Asia Resources have filed formal charges and form an arbitration team according to the rules of the Singapore International Arbitration Centre (SIAC) on December 24, 2013. Furthermore, Asia Resources will not make any the transfer of shares of PT Asian Bulk Logistics (ABL). “The main position of the company (Asia Resources) is that Rosan must make full payment in cash,” said Raden Curt.

Now the management of PT Berau coal Energy Tbk (BRAU) and Asia Resources Minerals Plc filed a formal claim to the former President Director of PT Berau Coal Energy Tbk, Rosan Roeslani, on January 20 2014. President Director of PT Berau Coal Energy Tbk, Raden Curt Eko Santoso Budianto said that Rosan Roeslani has failed to transfer USD 173 millions of cash. Rosan was supposed to repay the funds in accordance with the recovery agreement on June 26, 2013. Until maturity date, the USD 173 million funds have not been paid by Rosan.

The formation of the arbital tribunal has been conducted in accordance with the regulations applicable in the Singapore International Arbitration Center (SIAC) on December 24, 2013. The Company does not  want to do transfer of shares from PT Asian Bulk Logistics. “Rosan Roeslani must make full payment in cash,” Eko said in an information disclosure to the Indonesia Stock Exchange (IDX), Tuesday (March 4).

The company stated that KPMG is not as independent appraiser. Considering that Rosan has appointed KPMG unilaterally. In fact, the appointment of an independent appraiser should be done jointly in accordance with the terms contained in the recovery agreement. “We are currently waiting for Rosan’s plea,” said Eko.

            In addition, regarding the restoration of the remaining loss of USD30.67 million, the company and Asia Resources Mineral have initiated proceedings in France related to Chateau de Bonaban SAS and Chateau de Ia Grenerie SAS. The two French companies are indirectly owned by Rosan Roeslani. Rosan owned the companies through a holding company based in Luxembourg, RCapital holding, which later is the primary beneficiary of every French company sued by the Company. “The cost to acquire the French companies have assets of approximately 15 million euros,” said Eko.

The Company has received a ruling on sequestration of shares held by RCapital in the French companies. The company is currently looking for other ways to obtain a remedy for the remaining  loss. But at the same time, a subsidiary of PT Berau Coal has filed a petition for the dissolution of Chateau.

PT Berau Coal, as a shareholders who has investments in Chateau asks the court in Cayman to dismiss the incumbent directors and appoint a new director as a substitute. The arbitration ruling is expected to be issued in September 2014. “This is done to conduct an investigation into the status of the investment and whether there is still a remaining value of investment that can be recovered,” said Eko. (E)

Business New - March 7, 2014     

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