Fadel to go ahead with plan to take over GKG<\/p>\n
JAKARTA (JP): The chairman of the Bukaka group, Fadel
\nMuhammed, will go ahead with his plan to take over the assets of
\nthe bankrupt Golden Key Group (GKG) despite rumors that he faces
\nfinancial difficulties in doing so.<\/p>\n
Fadel said he was optimistic that state-owned Bank Pembangunan
\nIndonesia (Bapindo), which controls Golden Key Group's assets,
\nwould eventually allow his new company, PT Serang Industri Utama,
\nto buy and run the idle assets.<\/p>\n
"Our experience and management capabilities will help us to
\nrestore and operate the Golden Key Group's assets," Fadel said
\nafter attending the opening of the ASEAN Chamber of Commerce and
\nIndustry annual meeting.<\/p>\n
But Fadel did not say where he would raise the money to
\nfinance the takeover.<\/p>\n
He said earlier PT Serang would pay the group's debts to
\nstate banks within 20 years with a five-year grace period.<\/p>\n
He had also said he had commitments from foreign financial
\nsources and would invite other investors, including President
\nSoeharto's youngest son, Hutomo Mandala Putra, to join his plan.<\/p>\n
But sources said Fadel faced difficulties convincing foreign
\nfinancial sources and would probably resort to Bapindo or other
\nstate banks which had also channeled credits to Golden Key Group.<\/p>\n
The Minister of Finance, Mar'ie Muhammad, said Monday
\ninvestors wanting to take over Golden Key Group's assets must be
\nfinancially strong enough to do so without further burdening
\nBapindo.<\/p>\n
Golden Key Group's assets, mostly chemical factories in
\nCilegon, West Java, have been idle since 1994 when the government
\njailed the group's former owner, Eddy Tansil, for manipulating Rp
\n1.4 trillion (US$580 million) in loans, mostly from Bapindo.<\/p>\n
Other banks extending credits to Tansil included four state-
\nowned banks: Bank Bumi Daya, Bank Negara Indonesia 1946, Bank
\nExim and Bank Dagang Negara.<\/p>\n
Tansil escaped from jail in Jakarta on May 4 last year and is
\nstill at large.<\/p>\n
Mar'ie said Golden Key Group's assets had been long deserted
\nand their value was decreasing. In addition, some of its factory
\nmachinery was second-hand.<\/p>\n
He said the value of the idle assets might be less than Rp 700
\nbillion.<\/p>\n
Many foreign investors were interested in buying the assets
\nbut withdrew from negotiations with Bapindo after realizing the
\nassets real value was well below their book value, Mar'ie said.<\/p>\n
The chairman of the Bakrie Group, Aburizal Bakrie, said
\nBapindo should consider seriously Fadel's offer because many
\ninvestors had failed to take over the assets.<\/p>\n
"My group was the first business offered the assets. After
\nstudying it, I decided to withdraw because I thought I would not
\nbe able to make it better," Aburizal said.<\/p>\n
"Thus, Bapindo should think about Fadel's offer and thank him
\nbecause so far it is only Fadel who has expressed any serious
\nintention of saving the assets," he said.<\/p>\n
The Econit research group has questioned the way the
\ngovernment and Bapindo are transferring Golden Key's assets to
\nprivate investors.<\/p>\n
It has demanded transparency in the handling state banks' bad
\ndebts, including the selling of seized assets. (rid)<\/p>",
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