Amex files against Davomas

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.