Bank Mandiri unfazed by Semen Padang's threat<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Despite a lawsuit threat, state Bank Mandiri insisted on Tuesday
\nit would not lend cementmaker PT Semen Padang the money it needed
\nto repay maturing debts unless the company obtained approval from
\nits parent company, PT Semen Gresik.<\/p>\n
\"Prior to releasing the funds, Bank Mandiri has the right to
\ncancel the loan disbursement,\" said the bank's corporate
\nsecretary Koen Sardjono Sadrie in a media statement.<\/p>\n
The statement came following an earlier threat from Semen
\nPadang lawyer Adnan Buyung Nasution that the company would sue
\nBank Mandiri for reneging on its commitment to lend the company
\nsome Rp 500 billion (US$55 million). The loan was initially
\napproved in June.<\/p>\n
The West Sumatra-based Semen Padang, which is 99.99 percent
\nowned by state-owned Semen Gresik, has said that it does not
\nrequire shareholder approval to borrow money.<\/p>\n
Semen Padang, which needs the loan to repay debts, is required
\nto pay Rp 224 billion in six-month-term notes to state-owned
\nsocial security firm Jamsostek and some Rp 270 billion to ABN
\nAmro Bank due on Aug. 20.<\/p>\n
Semen Padang could eventually be declared bankrupt if it
\ndefaults on the loans.<\/p>\n
The company is seen as a rebellious subsidiary of Semen Gresik
\nas it has been campaigning for a total spin off from the parent
\ncompany since 2000 as part of efforts to foil attempts by the
\ncentral government to privatize the state-owned cement operation.<\/p>\n
Some reports have quoted Semen Padang officials as saying that
\nthe decision by Bank Mandiri to suspend the loan disbursement was
\nmade following intervention from senior officials at Semen
\nGresik.<\/p>\n
There has also been speculation that the Office of the State
\nMinister of State Enterprises could be behind the Bank Mandiri
\nloan suspension.<\/p>",
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"sponsor": "Okusi Associates",
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