Prudential resumes operations<\/p>\n
Zakki Hakim, Jakarta<\/p>\n
PT Prudential Life Assurance, the offices of which were closed
\ndown after it was declared bankrupt last month, resumed
\noperations on Tuesday.<\/p>\n
The reopening followed a Friday decision by the judge
\nsupervising the Prudential bankruptcy case to allow the company
\nto resume services.<\/p>\n
Prudential spokesman Edwin Pieroelie said in a release that
\nthe company's marketing and branch offices and customer services
\nhad resumed operation, while the head office was expected to
\nreopen within the week.<\/p>\n
\"The management now has two priorities: to replace the current
\ncontroversial (court-appointed) receiver and to lodge an appeal
\nwith the Supreme Court (over the bankruptcy ruling),\" Edwin said.<\/p>\n
Prudential has accused receiver Yuhelson of not being neutral
\nin the bankruptcy case because he is a former partner of the
\nlawyer who filed the bankruptcy suit against Prudential.<\/p>\n
Prudential lawyer Ricardo Simanjuntak told The Jakarta Post
\nthat Prudential was looking forward to seeing the commercial
\ncourt, in a hearing on Wednesday, remove Yuhelson from his
\nposition and replace him with a more competent lawyer.<\/p>\n
According to Law No. 4\/1998 on bankruptcy, a company declared
\nbankrupt loses its rights to manage its assets and a receiver is
\nappointed with the authority to take care of all of its assets,
\neven though an appeal may have been lodged with a higher court.<\/p>\n
Separately, the Indonesian Insurance Council (DAI) and
\nIndonesian Life Insurance Association (AAJI) on Tuesday urged the
\ngovernment to amend the Bankruptcy Law, saying that the Ministry
\nof Finance should have the final say in declaring an insurance
\nfirm bankrupt.<\/p>\n
\"It is the ministry that has the full knowledge of the
\nsolvability of an insurance company,\" said DAI chairman Hotbonar
\nSinaga.<\/p>\n
Top economics ministers lamented the commercial court's
\ndecision to declare Prudential Life Assurance (a unit of UK-based
\nPrudential Plc.) bankrupt as it is a solvent company with a risk-
\nbased capital of 255 percent, well above the minimum requirement
\nof 100 percent.<\/p>\n
Meanwhile, the Prudential management met with Minister of
\nManpower and Transmigration Jacob Nuwa Wea on Tuesday to seek
\nsupport for its case.<\/p>\n
Jacob told reporters after a closed-door meeting that he would
\ntalk to President Megawati Soekarnoputri and send a letter to the
\nMinistry of Finance in a bid to find a way to save the company
\nfrom being declared bankrupt.<\/p>\n
\"We surely want to avoid some 8,000 agents and 300 employees
\nlosing their jobs due to the bankruptcy ruling,\" he said.<\/p>\n
The commercial court declared Prudential bankrupt on April 23
\nafter a former agent\/consultant, Lee Boon Siong, filed a suit on
\nApril 7, accusing the company of failing to pay him bonuses.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prudential-resumes-operations-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}