Bankruptcy claim over Modernland approved<\/p>\n
JAKARTA (JP): In only its second decision since opening in
\nAugust, the Jakarta Commercial Court approved on Monday the
\nbankruptcy petition filed by Hussein and Johan Subekti against
\nproperty firm PT Modernland Realty for a Rp 94.13 million (about
\nUS$10,460) debt.<\/p>\n
Trading of Modernland Realty stocks were suspended on Monday
\nfollowing the court decision in the morning, the Jakarta Stock
\nExchange announced in a statement.<\/p>\n
Hussein and Johan Subekti filed their claim with the
\ncommercial court late last month after Modernland Realty failed
\nto repay their down payment to purchase apartments it developed.<\/p>\n
The bankruptcy law allows either party to appeal to the
\nSupreme Court. The appeal must be heard within 30 days.<\/p>\n
In its one other verdict, the commercial court rejected the
\nclaim filed by American Express Bank last month against publicly
\nlisted PT Ometraco Corporation, on the grounds the plaintiff's
\ncharge overlapped with its suit against Ometraco subsidiary PT
\nOmetraco Multi Artha.<\/p>\n
Chairman of the Bankruptcy Litigation of Lawyers Club, Hotman
\nParis Hutapea, who is also a bankruptcy attorney of Makarim and
\nTaira S law firm, said the panel of judges should not have
\napproved the claim against Modernland Realty because both parties
\nwere still seeking an out-of-court settlement.<\/p>\n
\"This decision will only spur other small creditors to file
\nmore petitions to the court seeking more bankruptcies,\" he told
\nThe Jakarta Post separately.<\/p>\n
He said that although the country's bankruptcy law did not
\nstipulate the minimum amount of debt which could be brought
\nbefore the commercial court, Modernland Realty's debt obligation
\nto the plaintiffs was relatively small.<\/p>\n
\"With such a small amount, the judge should have been wiser
\nwith his decision,\" he said.<\/p>\n
Lawyers for both the plaintiffs and Modernland Realty were not
\navailable for comment on Monday.<\/p>\n
Hotman said Modernland could appeal to the Supreme Court, but
\nthe court's decision had already tarnished the property firm's
\nimage, \"and that is bad\". (aly)<\/p>",
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