Closed Bank Pacific forms team to settle its debts<\/p>\n
JAKARTA (JP): Shareholders of Bank Pacific, one of the 16
\nprivate banks closed by the government early this month, have
\nformed a special team to speed up the process of settling its
\ndebts to both individuals and institutions.<\/p>\n
The head of the liquidation team, Mohammad Ma'ruf Saleh, said
\nSaturday the five-member team, which consists of shareholders and
\ncentral bank officials, would begin the process today, and it
\nexpected to complete certain tasks within a year.<\/p>\n
\"We are targeting -- but not making a promise -- to complete
\nthe disbursement of funds, deposits and savings within one year,\"
\nMa'ruf, who represented the central bank in the team, said after
\nthe bank's shareholder meeting.<\/p>\n
Ma'ruf said the team also expected to pay the bank's 872
\nemployees the full amount of their severance pay within two
\nmonths, after the team sold some of its assets, he said.<\/p>\n
It would also pay its employees their November wages and at
\nleast a three month severance pay by the end of this month, he
\nsaid.<\/p>\n
Holders of the accounts of up to Rp 20 million in the bank
\nhave received their money through state-owned banks.<\/p>\n
The central bank, Bank Indonesia, is the majority shareholder
\nof Bank Pacific, owning a 51 percent stake, while Ibnu Sutowo,
\nthe former president of the state-owned oil firm Pertamina, holds
\nthe rest.<\/p>\n
Ma'ruf said Bank Pacific's total assets reached around Rp 1.2
\ntrillion (US$338.02 million), and its third-party funds around Rp
\n500 billion.<\/p>\n
According to the October edition of Infobank monthly, the
\nbank's assets as of June 1995 reached Rp 2.27 trillion, while its
\ncredits reached Rp 1.36 trillion and public funds Rp 1.16
\ntrillion.<\/p>\n
Ma'ruf said the bank would first try to sell its assets in the
\nform of performing loans, totaling around Rp 310 billion.<\/p>\n
It would then sell its fixed assets, such as properties, he
\nsaid. Properties accounted for a large part of the bank's assets,
\nhe said, adding it was among the hardest to sell.<\/p>\n
Ma'ruf said some banks had offered to partially take over the
\nbanks, such as some of its branches, but the partial acquisition
\nwould complicate the liquidation process.<\/p>\n
\"We are looking for a bank with large capital to take over our
\nassets,\" he said.<\/p>\n
Ma'ruf said some of the employees might be referred to
\ncompanies belonging to the bank's shareholders, including chief
\ncommissioner Pontjo Sutowo.<\/p>\n
Pontjo, the son of Ibnu Sutowo, controls PT Indobuilco, which
\nowns the Hilton hotels in Jakarta, Surabaya (East Java) and Bali.<\/p>\n
Pontjo said Saturday the bank would concentrate on following
\nthe law and regulations during the liquidation process.<\/p>\n
\"We are going to abide by the rules during this process, the
\nsocial aspects of the liquidation would be our second
\nconsideration,\" he said in answering questions about the welfare
\nof the bank's employees.<\/p>\n
\"Employees are not the only people who have rights here, so do
\nour creditors, so we have to see who we are giving precedence
\nto,\" he added.<\/p>\n
Meanwhile, the spokesperson of the 16 banks' liquidation
\nprocess, Budi Rochadi, said yesterday members of the Association
\nof Private National Banks had no commitment to give employment
\npriorities for staff of the closed banks.<\/p>\n
\"The banks have not committed to employ workers of the closed
\nbanks. There might be deals made between banks, but they would be
\nconducted in a private capacity,\" he said.<\/p>\n
Bank Pacific owns 20 offices, 11 of which are located in
\nJakarta.<\/p>\n
The bank had had a history of trouble. It was reportedly on
\nthe brink of collapse in late 1995 due to bad loans estimated at
\nRp 2.1 trillion.<\/p>\n
Most of the bad debts were incurred by PT Pacific
\nInternational Finance, owned by Endang Utari Mokodompit, Ibnu's
\ndaughter who formerly headed the bank.<\/p>\n
Early this year, several private banks, including Bank Danamon
\nand the Bakrie Group's Bank Nusa International, were planning to
\nbuy the bank. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/closed-bank-pacific-forms-team-to-settle-its-debts-1447893297",
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