A Latief told to negotiate with IBRA

A Latief told to negotiate with IBRA

JAKARTA (JP): The Jakarta Commercial Court delayed on Tuesday
proceedings in the bankruptcy suit filed against trading firm A
Latief Corporation to allow the company the opportunity to reach
an out of court settlement.

"We will meet again on Tuesday of next week for the second
court hearing," presiding judge Sihol Sitompoel told the court.

The Indonesian Bank Restructuring Agency (IBRA) filed a
bankruptcy suit against A Latief in late March, claiming the firm
had unpaid debts of some US$17 million.

A Latief said the legal action by IBRA was out of proportion,
and claimed to have attempted to initiate debt negotiations with
IBRA but failed to receive a response from the agency's
officials.

Tantawi J. Nasution, a lawyer representing IBRA, acknowledged
efforts by A Latief to settle its debts with the agency.

"There is the possibility that A Latief Corporation is going
to repay its debts to IBRA. We will see if that really happens
within seven days from now," he said.

Tantawi said he would meet with A Latief executives to discuss
the possibility of negotiating a debt settlement.

He guaranteed that if A Latief resumed debt repayments to
IBRA, the agency would withdraw its bankruptcy suit.

But he stressed IBRA would not allow any debt relief for the
principle owed by the trading firm, saying such relief only was
possible for overdue interest payments and late payment
penalties.

Lawyer Hotman Paris Hutapea, who represents A Latief, said on
Tuesday there was a "technical" problem with the bankruptcy suit
filed against his client.

Hotman said A Latief originally owed debts to Bank Danamon and
Bank Pelita, not IBRA.

Those two banks were closed down by the government and
transferred to IBRA under the government's bank restructuring
program, he said.

"Thus the bankruptcy suit should be filed by these two banks,
but with IBRA's power of attorney," he said.

The power of attorney was needed because the management of the
closed banks had been transferred to IBRA, according to Hotman.

"This is in line with Article 40 of Government Decree No. 17
on IBRA," he said.

The agency brought three debtors to the commercial court in
late March for their alleged failure to repay debts to the
agency.

The companies are trading firm A Latief Corporation, crude
palm oil processor PT Sumi Asih, which owes the agency Rp 73.94
billion and $6.73 million, and PT Ometraco Corporation, which has
$53.18 million in unpaid debts. (udi)