SYDNEY (Yosefardi) – White Energy Company Limited reported BCBC Singapore Pte Ltd and Binderless Coal Briquetting Company Pty Limited are currently involved in legal proceedings against Bayan and Bayan International Pte Ltd in the High Court of Republic of Singapore, over matters relating to the Tabang coal upgrading plant, located at Bayan’s Tabang mine in East Kalimantan, Indonesia.
The issues in the proceedings include a claim by BCBC and Binderless against Bayan fro damages for breach of the Joint Venture Deed between Kaltim Supacoal shareholders, including the obligation to supply coal to Kaltim Supacoal and the obligation to provide funding to Kaltim Supacoal.
Bayan has filed a defence to the claim, and also a counterclaim against BCBC and White Energy seeking damages.
On 15 July 2013, BCBC was served with notice of Bayan’s appeal from the orders made by the Supreme Court. Bayan’s appeal has been listed for hearing before the Court of Appeal of Western Australia on 11 and 12 March 2014.
Kaltim Supacoal suspended operations at the Tabang plant in late November 2011. Following a petition filed by a number of local creditors of Kaltim Supacoal in the commercial court of Surabaya, administrators were appointed to Kaltim Supacoal and Kaltim Sucoal has now been placed into bancruptcy.
As shareholders are aware, the White Energy Group has previously fully impaired its investment in Kaltim Supacoaland as such the bankruptcy process will not have anu further impact on the accounting results of the White Energy Group.