Golf course developer faces first bankruptcy<\/p>\n
JAKARTA (JP): Construction firms PT Jaya Obayashi and PT Nusa
\nRaya Cipta filed Tuesday the first bankruptcy claim in the newly
\nestablished commercial court in Central Jakarta against a golf
\ncourse and real estate developer.<\/p>\n
Lawyer for the construction firms, Hotman Paris Hutapea of the
\nMakarim and Taira S law firm, said PT Karabha Digdaya owed the
\ntwo builders Rp 15.3 billion (about US$1.40 million) in
\nconstruction fees and interest on the development and
\nconstruction of its Emerald golf course and clubhouse in
\nCimanggis, West Java.<\/p>\n
PT Karabha Digdaya is owned by Judith Soerjadjaja, the
\ndaughter of William Soerjadjaja, former owner of the country's
\nlargest automaker PT Astra International.<\/p>\n
PT Jaya Obayashi, a joint venture between Japan's Obayashi
\nCorp. and Indonesia's Jaya group, set up a joint operation with
\nPT Nusaraya Cipta on April 23, 1993, to develop Karabha's Emerald
\ncourse.<\/p>\n
\"Even though my clients have done their job, Karabha Digdaya
\nhas not paid the construction fee to my clients,\" Hotman said.<\/p>\n
He said Karabha was recently sued by publicly listed Lippo
\nBank and Bank Internasional Indonesia for failing to pay back a
\nRp 200 billion loan owed to the two institutions.<\/p>\n
Accompanied by fellow attorneys Anthony LP Hutapea and
\nJamaslin Purba, Hotman said his bankruptcy case was the first of
\nits kind since the enactment of the new bankruptcy law on August
\n20.<\/p>\n
Hotman filed the suit before I Gde Ketut Sukarata, the
\ncommercial court's chief judge.<\/p>\n
Sukarata, who was appointed by Minister of Justice Muladi last
\nmonth to head the country's first commercial court, said the
\ncourt would soon appoint a three-judge panel, seven supervisory
\njudges and 16 judges to settle bankruptcy cases in the commercial
\ncourts.<\/p>\n
\"We are expecting more bankruptcy cases but this is the first
\nlegal suit to be settled in the commercial court,\" Sukarta said.<\/p>\n
Hotman said his clients were seeking a declaration from the
\ncommercial court that Karabha Digdaya was bankrupt, which would
\nallow for the selling of its assets, including Emerald golf
\ncourse and real estate, to repay the funds owed.<\/p>\n
The government revised the bankruptcy law and set up the
\ncommercial court as part of the agreement with the International
\nMonetary Fund (IMF) in exchange for a US$43 billion in bailout
\nfuns to prop up the country's teetering economy.<\/p>\n
Under the new law, a company or any creditor can file for
\nbankruptcy. The first trial must be held within 25 days of filing
\nsuit and the commercial court must hand down its decision within
\n30 days.<\/p>\n
Once bankruptcy is declared, the court has 14 days to
\ndetermine the dates for when creditor claims will be listed. Both
\ncompany and creditor each has one opportunity to appeal to the
\nSupreme Court and the appeal must be heard within 30 days.<\/p>\n
Indonesian cash-strapped companies will be allowed to file for
\nsuspension of payments. Under this procedure, the court issues a
\ntemporary payment suspension order during which time the debtor
\nand creditors will work out a restructuring plan. The company is
\ngiven up to 270 days to negotiate reorganization and failure to
\ndo so could result in the initiation of bankruptcy proceedings.<\/p>\n
The country's old bankruptcy law, dating back to 1905 during
\nDutch colonial rule, was insufficient in the wake of mounting
\nbusiness collapses caused by the deepening economic crisis.<\/p>\n
Hotman said his law firm expected to file nine more bankruptcy
\ncases in the months ahead, mostly from Singapore banks, which had
\nprovided huge lending to the country's debt-laden companies.<\/p>\n
\"But we cannot disclose any names yet because we are working
\non completing the documents,\" he said. (aly)<\/p>",
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