Dharmala Sakti asks court for time to negotiate debts<\/p>\n
JAKARTA (JP): Publicly listed PT Dharmala Sakti Sejahtera
\nasked the Jakarta Commercial Court on Monday to hold off issuing
\na verdict in a bankruptcy suit filed against the holding company
\nto allow it to negotiate its debt restructuring with creditors.<\/p>\n
\"Considering the clear signs of economic recovery in
\nIndonesia, Dharmala Sakti Sejahtera sees a good chance to improve
\nits operations and be able to settle its debts with the
\ncreditors,\" said Anwar from Indriany, Anwar and Jimmy law firm,
\nrepresenting Dharmala Sakti.<\/p>\n
Joint venture PT Hanil Bakrie Finance Corporation filed a
\nbankruptcy suit against Dharmala Sakti in mid-February for the
\nlatter's failure to repay US$2.4 million in matured promissory
\nnotes.<\/p>\n
Dharmala Sakti also has outstanding debts totaling $114.5
\nmillion and Rp 457 billion with other local and foreign
\ncreditors.<\/p>\n
Among the biggest creditors are the Indonesian Bank
\nRestructuring Agency, Hong Kong-based Peregrine Fixed Income,
\ncurrently in liquidation, the Singapore branch of Canadian
\nImperial Bank of Commerce, joint venture PT AB Sinar Mas Finance
\nand the Jakarta office of Standard Chartered Bank.<\/p>\n
Anwar said his client was progressing in serious debt
\nrestructuring negotiations with the above creditors and some
\nothers, covering about 50 percent of the total debt value.<\/p>\n
\"So, it is fair that Dharmala Sakti petitioned the court for a
\nsuspension of payment, or a PKPU\", Anwar said.<\/p>\n
According to the 1998 Bankruptcy Law, a company facing a
\nbankruptcy suit can temporarily halt the action by filing a PKPU
\nrequest with the court.<\/p>\n
If the request is approved, the company is given a maximum of
\n270 days to negotiate a debt restructuring deal with all of its
\ncreditors.<\/p>\n
However, the grace period can be ended at any time by a
\nmajority vote of the creditors if the borrower fails to show it
\nhas the ability and good faith to settle its debts.<\/p>\n
The majority vote is decided by at least three fourths of the
\nnumber of the creditors who attend the court-supervised
\ncreditors' meeting. The three-fourths vote must represent at
\nleast 50 percent of the total value of the debt.<\/p>\n
If the PKPU period ends without a debt restructuring deal in
\nplace, the borrower is automatically declared bankrupt. By being
\ndeclared bankrupt through the PKPU process, the borrower loses
\nits right to appeal to the Supreme Court under the law.<\/p>\n
Dharmala Sakti is a holding company of Dharmala Group, owned
\nby the Gondokusumo family.<\/p>\n
There are five companies affiliated to Dharmala Group that
\nhave been declared bankrupt: PT Dharmala Agrifood, PT Putra Surya
\nMultidana, PT Deemte Sakti Indo, PT Putra Sejahtera Persada and
\nforeign affiliate Detron Ltd. of Singapore.<\/p>\n
Another, PT Aster Dharma, was also declared bankrupt, but the
\ndecision was overruled by the Supreme Court through its civil
\nreview decision late last year. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dharmala-sakti-asks-court-for-time-to-negotiate-debts-1447893297",
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