Churchill subsidiary, PT Indonesia Coal Development lodged a claim against Mr Andreas Rinaldi in Indonesia in addition to commencing arbitration proceedings in Singapore against other members of the Ridlatama Group for breaches of the investor's agreements.

ICD also received certain letters from Ridlatama Group companies by which they purported to terminate the 2007 Investors Agreement with ICD.

Following arbitration proceedings, ICD has now been served with a counter claim filed on behalf of the Ridlatama Group. The counterclaim seeks an order that ICD's 75% interests in PT Ridlatama Tambang Mineral and PT Trade Powerdino be declared null and void.

It considers the Ridlatama counter claim frivolous and categorically denies the allegations made. All the relevant payments were made, and ICD continues to believe the claims to be baseless. ICD has referred the new claims to its solicitors in Indonesia and believes these claims have no commercial or legal merit and will continue to take whatever action it deems necessary to fully protect its legal rights in this matter.