Davomas wants debt payment halted<\/p>\n
JAKARTA (JP): Publicly listed cocoa producer PT Davomas Abadi
\nis to ask Central Jakarta Commercial Court to suspend the payment
\nof its US$3 million debt to American Express Bank.<\/p>\n
Lawyers representing the company, Hotman Paris Hutapea of
\nMakarim and Taira and Denny Kailimang of Kailimang, said on
\nTuesday that their clients would file for a suspension of payment
\nwithin the next two days.<\/p>\n
"We will submit the proposal for the suspension of the payment
\nto the commercial court either on Wednesday or Thursday," Hotman
\nsaid after the second hearing on the bankruptcy case pitting
\nAmerican Express Bank against Davomas Abadi.<\/p>\n
He acknowledged that his client owed a total US$3 million in
\npromissory notes to the American Express Bank (Amex).<\/p>\n
Amex, a unit of the American Express Co., filed a bankruptcy
\nclaim against the cocoa producer at Jakarta's commercial court on
\nSept. 3 after the latter failed to redeem the US$3 million
\npromissory notes which matured on Jan. 7 this year.<\/p>\n
In the court proceedings, lawyers for the plaintiffs, J. Cemby
\nHutapea of Kemalsjah of Cemby & Avriline demanded the court
\ndeclare PT Davomas bankrupt and sell its assets if it failed to
\npay its debts.<\/p>\n
The new bankruptcy law allows troubled Indonesian companies to
\nfile a suspension of payments. Under the procedure, the court can
\nissue a temporary payment suspension order during which time the
\ndebtors and creditors will work out a reorganization plan.<\/p>\n
The debtor is then given up to 270 days to renegotiate the
\ndebts. Failure to do so will result in the initiation of
\nbankruptcy proceedings.<\/p>\n
If it does not issue a payment suspension order, the court
\nmust hand down its decision within 30 days of the suit being
\nfiled and any appeal must also be heard within 30 days.<\/p>\n
Indonesia enacted ambitious new bankruptcy legislation on Aug.
\n21, replacing an antiquated law which had been in place since
\n1906 and had proved to be insufficient in settling bankruptcy
\ncases.<\/p>\n
Presiding judge Kristi did not make any decision on Tuesday
\nbut adjourned the hearing until next Monday to allow the
\ncommercial court to verify the documents for suspension of
\npayment. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/davomas-wants-debt-payment-halted-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}