Petition against Danamon rejected<\/p>\n
JAKARTA (JP): The Central Jakarta Commercial Court turned down
\non Wednesday a bankruptcy petition filed by Bank IFI against the
\npublicly listed Bank Danamon, saying the petition violated the
\nbankruptcy law.<\/p>\n
\"The petitioner has no locus standi to file for the bankruptcy
\npetition,\" said chief judge Subari in his verdict.<\/p>\n
Article 1 paragraph 3 of the 1998 bankruptcy law stipulates
\nthat a bank could be declared bankrupt through a petition filed
\nonly by Bank Indonesia, he said.<\/p>\n
Subari's verdict ended the legal controversy over Bank IFI's
\nmove to bring to bankruptcy one of Indonesia's largest banks.<\/p>\n
Last month, Bank IFI filed the petition against Bank Danamon
\non charges the latter had neglected payment of debts, interest
\nand penalties amounting to some US$12 million.<\/p>\n
Despite the legal obstacle Bank IFI went ahead, reasoning that
\nBank Indonesia had neglected IFI's appeal to file the petition on
\nits behalf.<\/p>\n
Bank Indonesia said earlier it had rejected the appeal, as a
\nbankruptcy petition against Bank Danamon ran against the public
\ninterest.<\/p>\n
Bank Danamon was one of the country's largest private banks,
\nbut is now 99 percent owned by the government after the
\nrecapitalization program. The remainder is owned by the investing
\npublic.<\/p>\n
The rift between the two banks arose when Bank Danamon refused
\nto pay the interest and penalties on its debts, worth $43.6
\nmillion, to IFI.<\/p>\n
According to IFI, the debt payment, including interest and
\npenalties, has reached $12 million.<\/p>\n
Bank Danamon took over the debts of Bank Nusa Nasional, after
\nthe latter merged with Bank Danamon last year.<\/p>\n
Bank Nusa pledged some $16.78 million in 1996 in a syndicated
\nloan with other local banks. The bank later offered $4.6 million
\nof its commitment to Bank IFI, under a sub-participation deal in
\nthe syndicate.<\/p>\n
However, as the loan became non-performing, Bank IFI withdrew
\nfrom the syndicate, and demanded the money be paid back.<\/p>\n
Bank Danamon agreed to return the principal amount of the
\ndebt, but refused to pay the full interest and penalties.<\/p>\n
Danamon argued that as Bank IFI had retreated from the
\nsyndicate, it was not entitled to receive the full rights, as
\nwere other members of the syndicate.<\/p>\n
Judge Subari, during the reading out of the verdict, suggested
\nthe disputing parties settle their differences over the payment
\nin a civil court.<\/p>\n
Bank IFI's legal representative Hotman Paris Hutapea said the
\ncourt rejected the bankruptcy appeal on technical grounds, but
\nrecognized Bank Danamon's obligation to repay Bank IFI's full
\nentitlement.<\/p>\n
\"Substantively we have won the case ... it should be used as
\nfurther evidence,\" Hotman told reporters after the hearing.<\/p>\n
However, he declined to say whether Bank IFI would seek a
\ncivil court settlement to end its legal spat with Bank Danamon.<\/p>\n
\"I will bring this verdict to Bank Indonesia's board of
\ngovernors and tell them they should take action against Bank
\nDanamon's directors,\" he added.<\/p>\n
Bank Danamon lawyer Amir Syamsuddin said the commercial court
\ncould not issue a ruling over the disputed payment difference, as
\nit fell under the authority of a civil court.<\/p>\n
\"What the court read out during the verdict was the
\nconsiderations the petitioner stated in its petition. They were
\nin no way part of the court's verdict,\" Amir explained.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/petition-against-danamon-rejected-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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