Supreme Court rejects Bank Papan appeal<\/p>\n
JAKARTA (JP): The Supreme Court has upheld Jakarta Commercial
\nCourt's decision to reject an attempt by Bank Papan Sejahtera to
\nhave PT Semen Cibinong declared bankrupt.<\/p>\n
In a verdict issued on Tuesday, the Supreme Court said that
\nthe appeal had been turned down because the management of Bank
\nPapan, which has been closed down by the government, were not in
\na position to issue powers of attorney given that the bank's
\nassets are now under the control of the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
IBRA took over the management of Bank Papan on Feb. 27. The
\nbank was closed on March 13 after its major shareholders failed
\nto inject fresh funds to improve the bank's capital adequacy
\nratio.<\/p>\n
Bank Papan filed a bankruptcy petition against Semen Cibinong
\nin early March after the company failed to repay loans amounting
\nto $8.6 million which fell due between June 30 and Oct. 1 last
\nyear.<\/p>\n
On April 1, the commercial court rejected Bank Papan's
\npetition on the grounds that the bank no longer had valid power
\nof attorney.<\/p>\n
Lucas, Bank Papan's lawyer, said that he respected the Supreme
\nCourt's decision, but demanded the central bank and IBRA clarify
\nexactly when the assets of Bank Papan and 37 other banks closed
\ndown by the government were transferred to IBRA control.<\/p>\n
\"If the assets were transferred to IBRA's control on the day
\nof the bank's closure, which was March 13, then the bank's power
\nof attorney is valid. If that is the case we will seek a civil
\nreview because it would change the picture considerably,\" Lucas
\ntold The Jakarta Post on Friday.<\/p>\n
For a civil review to be accepted by the Supreme Court,
\nclaimants have to show significant new evidence or a serious
\nmisapplication of the law.<\/p>\n
Hotman Paris Hutapea, the defendant's lawyer, said the case
\nwas straightforward.<\/p>\n
\"I have said that Bank Papan's power of attorney was invalid
\nfrom the first hearing at the commercial court,\" he said.<\/p>\n
He questioned why Bank Papan had used IBRA's power of attorney
\nat the appeal while arguing that the previous power of attorney
\n(held by the bank) was still valid.<\/p>\n
\"There is an inconsistency there. I think by submitting to
\nIBRA's power of attorney, the bank proved that its previous power
\nof attorney was invalid,\" he added. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/supreme-court-rejects-bank-papan-appeal-1447893297",
"image": ""
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