Modernland Realty rejects commercial court decision<\/p>\n
JAKARTA (JP): Property firm PT Modernland Realty rejected on
\nTuesday the commercial court's decision to declare it bankrupt,
\nsaying it would appeal to the Supreme Court to nullify the
\ninsolvency decision.<\/p>\n
The property firm's lawyer, Amir Syamsudin of Amir Syamsudin
\nand Partners, said that the court decision was hasty because the
\ndefendant and plaintiffs had already expressed willingness to
\nrenegotiate the debt.<\/p>\n
\"Actually we asked the panel of judges to give us seven days
\nto renegotiate the debt payment but the judge turned it down,\" he
\ntold The Jakarta Post on Tuesday. \"The judge should have been
\nwiser in his decision,\" he said.<\/p>\n
\"We will do our best to win the case in the Supreme Court,\" he
\nsaid.<\/p>\n
Amir said that both the debtor and the creditors had been
\nworking on debt payment reorganization after the creditors filed
\nthe bankruptcy petition late last month.<\/p>\n
\"Both the creditors and debtor have almost agreed to settle
\nthe debt payment after working on several issues,\" he said.<\/p>\n
But in a surprise hearing on Monday, presiding judge Haryono
\napproved the insolvency petition filed by Hussein Sani and Johan
\nSubekti against property firm PT Modernland Realty for the
\nlatter's failure to pay for a Rp 94.13 million debt.<\/p>\n
Bankruptcy litigation lawyers said that the property firm
\nshould not have been declared insolvent yet if it had proposed
\nsubmitting a suspension of payment petition to the commercial
\ncourt.<\/p>\n
A court official said on Tuesday that the plaintiff had failed
\nto abide by the legal procedures, such as proposing a suspension
\nof payments to the commercial court, if it wanted to renegotiate
\nits debts.<\/p>\n
\"It is just a pity that Modernland did not propose a
\nsuspension of payments to the court,\" the court official who
\nasked for anonymity said.<\/p>\n
The country's ambitious bankruptcy law, which came into effect
\non August 20, allows troubled Indonesian debtors to file for a
\nsuspension of payments in the commercial court. Under this
\nprocedure, the court issues a temporary suspension of payments
\norder to allow the debtor and its creditors to work out a debt
\nrestructuring plan.<\/p>\n
The debtor is then given up to 270 days to negotiate a
\nrestructuring plan. Failure to do so could result in the
\ninitiation of bankruptcy proceedings.<\/p>\n
Amir admitted on Tuesday that his client did not propose a
\nsuspension of payment because his client could pay the Rp 94
\nmillion debt.<\/p>\n
The bankruptcy law allows either party involved in the dispute
\nto appeal to the Supreme Court. The appeal must be heard within
\n30 days.<\/p>\n
But Amir said that the Jakarta Commercial Court's decision to
\ndeclare Modernland bankrupt had already damaged its client's
\nimage.<\/p>\n
\"Though the debt is relatively small, the impact of the
\nbankruptcy decision is bad for my client,\" he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/modernland-realty-rejects-commercial-court-decision-1447893297",
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