JAKARTA: PT Humpuss Intermoda Transportasi Tbk cannot pay its unit, Humpus Sea Transportation Pte Ltd, compensation and rent claims amounted to US$72 million.
Following its cash and other financing alternatives, the HITS-coded company can only settle for US$50 million within 15 years.
Such numbers were obtained by considering the decision of the general meeting of shareholders on Thursday (9/13/2012), requesting payment of compensation should not burden the company’s operations.
The compensation claims started in 2004 when HIT decided to expand bulk and chemical carrier business through its Singapore-based unit Humpuss Sea Transport Pte Ltd (HST).
HST rented two panamax vessels from South Korea-based Hanjin and Norwegian’s Parkbulk and seven petrochemical vessels from Greece-based Empire Chemical Tanker Holdings.
Due to economic crisis in 2008, HST then negotiated to shorten the lease time, but failed to sign a deal.
The three ships were then sued the company and two subsidiaries HST and two other HIT’s units in the English Courts, under the laws of London Maritime Arbitration (LMMA).
HIT will soon negotiate with the plaintiffs, represented by Borelli Walsh, a financial consultant in Singapore, to cut the settlement figure, said HIT’s President Director Theo Lekatompessy.
From the total US$72 million, the original debt is actually only around US$10.5 million. While the rest is immaterial compensation due to unfinished lease contract.
Plaintiffs demand HIT to settle the debt within 1 year divided into 5 payment stages.
HIT will soon negotiate with the plaintiffs, represented by Borelli Walsh, a financial consultant in Singapore, to cut the settlement figure, said HIT’s President Director Theo Lekatompessy.
From the total US$72 million, the original debt is actually only around US$10.5 million. While the rest is immaterial compensation due to unfinished lease contract.
Plaintiffs demand HIT to settle the debt within 1 year divided into 5 payment stages.
However the company claimed the plaintiff requests are unfair because the amount of immaterial compensation far exceeds the cost of rent arrears. In fact, all vessels had been returned to the plaintiffs.
Based on Helios Capital, an independent financial institution, HIT may only pay as much as US$34 million by using internal cash.
In addition to internal cash, explained Theo, the company has been considering five financing alternatives, such as rights issue, sale of treasury stock, bank loans, convertible bonds, and sale of company assets or subsidiaries.
However, of the five alternatives, only two of which seem to be realized, namely the sale of assets and treasury stock.
“We might sell Asta Samudera’s ship worth US$8.5 million. as for treasury stock, we have 35 million shares or around 6.3% worth IDR71.12 billion or US$7.5 million.” (T05/TW)
Based on Helios Capital, an independent financial institution, HIT may only pay as much as US$34 million by using internal cash.
In addition to internal cash, explained Theo, the company has been considering five financing alternatives, such as rights issue, sale of treasury stock, bank loans, convertible bonds, and sale of company assets or subsidiaries.
However, of the five alternatives, only two of which seem to be realized, namely the sale of assets and treasury stock.
“We might sell Asta Samudera’s ship worth US$8.5 million. as for treasury stock, we have 35 million shares or around 6.3% worth IDR71.12 billion or US$7.5 million.” (T05/TW)
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