Canadian firm to acquire Dharmala stake<\/p>\n
JAKARTA (JP): Manulife Financial of Canada, foreign partner of
\njoint venture PT Asuransi Jiwa Manulife Indonesia (AJMI), has
\nplaced a Rp 160 billion (US$17.7 million) bid to acquire now
\ninsolvent PT Dharmala Sakti Sejahtera's (DSS) 40 percent stake in
\nthe joint venture, a source said.<\/p>\n
A representative from one of DSS's creditors said on Wednesday
\nthat the Canadian firm, currently holding 51 percent stake in
\nAJMI, was ready to finance the acquisition to increase its stake
\nAJMI to 91 percent.<\/p>\n
"Their bid is well above the latest appraised value on the
\ncompany by an independent firm," he said.<\/p>\n
The value of the 40 percent stake of AJMI according to an
\nappraisal conducted by independent firm Deloitte and Touche's in
\nearly 1999 stood at between Rp 109 billion and Rp 145 billion.<\/p>\n
AJMI is currently owned by Manulife Financial of Canada, 51
\npercent, the World Bank's private investment arm International
\nFinance Corporation, 9 percent, and DSS, 40 percent.<\/p>\n
DSS was declared bankrupt in early June this year at the
\nJakarta Commercial Court, following the company's failure to
\nrepay its matured debts.<\/p>\n
Trying to recoup their money, the creditors -- following DSS's
\nbankruptcy status -- decided to liquidate the valuable assets of
\nthe insolvent company and distribute all the sale proceeds
\nproportionately among the creditors.<\/p>\n
The process of selling the assets of the bankrupt company and
\ndistributing them among the creditors, according to the 1998
\nBankruptcy Law, must be conducted under the court's supervision
\nby an independent party called a "court receiver".<\/p>\n
In DSS's case, the liquidation process did not go smoothly as
\ncreditors disagreed with the commercial court on who should serve
\nas the court receiver.<\/p>\n
But, the commercial court-appointed receiver, Lucas from Lucas
\n& Partners law firm, finally had to resign from his position
\nfollowing the creditors' strong demand to maintain the right to
\nappoint a court receiver on their own.<\/p>\n
The creditors of DSS voted on Thursday to appoint Ari Ahmad
\nEffendi from AAE & Associates as the new court receiver to
\nreplace Lucas.<\/p>\n
Lucas claimed that he had done his job as a court receiver for
\nDSS professionally, but had to pull out as he saw there were
\nunhealthy intentions among the creditors. Lucas did not
\nelaborate.<\/p>\n
Another representative from one of the creditors said that
\nnothing was wrong with Lucas, saying, "We just have to have a
\ncourt receiver that is appointed by ourselves, not by the court."<\/p>\n
The creditors' right to appoint their own court receiver is
\nclearly backed by a clause in the 1998 Bankruptcy Law, he added.<\/p>\n
A court receiver, under the supervision of the commercial
\ncourt and the concerned creditors, should work for the creditors'
\ninterests by striving to reach the highest possible price in
\nselling the insolvent company's assets and proportionately
\ndistributing the proceeds among the creditors.<\/p>\n
A court receiver, as stipulated by the 1998 decree of the then
\nminister of justice, receives a progressive commission fee of
\nbetween 1.5 percent and 6 percent of the assets sold.<\/p>\n
DSS owns 11 affiliated companies, which include AJMI, as well
\nas publicly listed companies PT BBL Dharmala Finance, PT ABDA and
\nPT Maskapai Reasuransi Indonesia.<\/p>\n
The above representative of DSS's creditor estimated that the
\ncourt receiver would receive a commission fee of about Rp 17
\nbillion from selling DSS assets.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/canadian-firm-to-acquire-dharmala-stake-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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