Banks strive to recoup Robby's debts<\/p>\n
JAKARTA (JP): Bank Bumi Daya (BBD) and Bank Pembangunan
\nIndonesia (Bapindo) are searching for ways of tackling Robby
\nTjahyadi's debt arrears of around Rp 500 billion (US$239 million)
\nat the two state banks.<\/p>\n
Spokesmen of the two banks said Saturday that technical and
\nadministrative solutions are being hammered out to recoup the
\nunpaid debts of Robby, the owner of the Kanindo Group of textile
\ncompanies.<\/p>\n
Sampurna and Eddy Tjahyono, respectively spokesmen for BBD and
\nBapindo, confirmed that Robby has defaulted on his loans to the
\ntwo banks, but both refused to disclose the exact amount of the
\noverdue debt.<\/p>\n
Reliable sources, however, put Robby's debt arrears at the two
\nbanks in the neighborhood of Rp 500 billion.<\/p>\n
Robby's bad debts have been widely published in the news media
\nafter Minister of Finance Mar'ie Muhammad and Minister of
\nIndustry Tunky Ariwibowo made a statement early last week about
\nthe plan of Texmaco Group, a major textile producer, and the
\nAssociation of Batik Cooperatives (GKBI) to take over the Kanindo
\nGroup.<\/p>\n
The ministers' statements followed the stunning allegation
\nabout the Kanindo Group's debt problem made by a member of the
\nHouse of Representatives (DPR) in February, just weeks after the
\nGolden Key Group's huge unpaid debt at Bapindo became public.<\/p>\n
Credit<\/p>\n
Robby, according to reliable sources, received credit
\nfacilities totaling Rp 474 billion from both BBD and Bapindo
\nbetween 1990 and 1993 to build up his textile giant, now known as
\nthe Kanindo Group.<\/p>\n
The loans, which carry interest of between 20 and 28 percent
\nper year, have partially turned sour, leaving Robby with debt
\narrears of around Rp 376 billion as of March. The overdue amount
\nis estimated to rise to Rp 490 billion by the end of this year if
\nno fresh payments are made, the sources said.<\/p>\n
Kanindo executives acknowledged that the textile giant suffers
\nfrom a serious liquidity problem as suppliers of raw materials
\nfor the textile manufacturing have required cash for all goods
\nthey sold, following the disclosure of the business group's debt
\nproblem.<\/p>\n
An executive of another textile company said that the Kanindo
\nGroup's problems worsened in the following months as the group
\nsold most of its products below their production costs due to its
\nsevere need for cash.<\/p>\n
In February, Bambang Warih Kusuma, a DPR member, disclosed
\nthat the Kanindo Group's bad debt was larger than Bapindo's
\ncredit facility defaulted by the Golden Key Group.<\/p>\n
Eddy Tansil, Golden Key's boss, was sentenced early this month
\nto 17 years for circumventing banking procedures, which
\napparently caused Bapindo to lose more than US$448 million. The
\nformer head of Bapindo's Jakarta branch was sentenced to nine
\nyears for his part in helping Tansil cash the illegal credit
\nfacility, while the bank's three former presidents are now being
\ntried for their alleged roles in the case.<\/p>\n
Similar<\/p>\n
The Kanindo Group's case is similar to that of the Golden Key
\nGroup, Bambamg said, alleging that Robby also violated banking
\nstandards and channeled the loan facility to other business
\nactivities outside his textile operation.<\/p>\n
He also charged that Robby, who spent five years in jail in
\nthe 1970s for smuggling luxury cars into the country, had
\novervalued his assets in order to receive such a large loan.<\/p>\n
State Minister for Investment Sanyoto Sastrowardoyo said
\nFriday bankers are at fault if Kanindo's loans were abnormally
\ntoo high.<\/p>\n
"BKPM just gave an investment license," said Sanyoto, also the
\nchairman of the Investment Coordinating Board (BKPM). "It is the
\nbank which should assess whether or not a project is feasible and
\nwhether Robby's assets were overvalued."<\/p>\n
In a related development, Johannes Kotjo, a former executive
\nof the Salim Group, confirmed over the weekend that he and his
\nassociates have provided a bridging loan of Rp 825 million (US$
\n379,000) per day to salvage the debt ridden Kanindo group.<\/p>\n
He said his side, which includes Kim Johannes Mulia, an
\nIndonesian businessman living in Singapore, would have an option
\nto receive the Kanindo group's shares if Robby is not able to
\nrepay the loans, which would be extended to the company at Rp 825
\nmillion per day within six months beginning Aug. 1. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/banks-strive-to-recoup-robbys-debts-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}