Amex files against Davomas

JAKARTA (JP): American Express Bank became the first foreign bank to file a case in Indonesia's new bankruptcy court against listed cocoa maker PT Davomas Abadi.

According to documents filed at Central Jakarta Commercial Court, the Jakarta branch of American Express is seeking the recovery of US$3 million owed to the bank in promissory notes which matured on Jan. 7, 1998.

Davomas' share price fell Rp 25 to Rp 325 (3 U.S. cents) on 869,000 changing hands on the back of the news it was being taken to court.

This will be the third case since the bankruptcy law was enacted, although the first involving a listed company.

On Wednesday, PT Lelco Trindo filed a case against PT Mustika Princes Hotel, the owner of the Sheraton International Hotel Yogyakarta.

Mustika is controlled by Mooryati Soedibyo, president of listed herbal medicine producer PT Mustika Ratu.

Lelco was one of the contractors for the development of the hotel in Yogyakarta, Central Java.

According to a document filed in the commercial court, Lelco claimed that Mustika defaulted on the payment of the construction fee to Lelco of Rp 319.9 million (US$30,000).

On Tuesday, PT Jaya Kobayashi and PT Nusa Raya Cipta took golf property developer PT Karabha Digdaya to the commercial court for failing to pay them Rp 15.3 billion in construction fees.