Aster Dharma disputes bankruptcy verdict
JAKARTA (JP): PT Aster Dharma Industri, a plastic packaging company listed on the Jakarta Stock Exchange (JSX), disputed on Friday the Supreme Court's decision declaring the company bankrupt.
Rafael Adrian from Taira Faisal & Panggabean law firm, the legal consultant of the company, said the Supreme Court's decision was unfair.
He said that he would seek a civil review at the Supreme Court.
The Supreme Court issued the bankruptcy verdict on Aug. 18 but it was only announced on Thursday.
According to the verdict document, Aster Dharma was declared bankrupt because it failed to exercise its guarantee to take over its foreign subsidiary's matured debts.
The subsidiary is now under liquidation at the Singapore Bankruptcy Court.
Rafael said the Supreme Court should have waited until the liquidation was completed in Singapore.
"Part of the matured debt will be repaid by the proceeds from the sales of the Singapore company," he said, adding that Aster Dharma would then be responsible if the funds raised from the sales of the company's assets could not cover the entire debt.
Dtron Singapore Pte. Ltd., Aster Dharma's foreign subsidiary, was declared bankrupt on Dec. 11 and was later liquidated under order from the High Court of Singapore after failing to pay some US$3.8 million in principal loans, which matured in early February 1998.
The matured debts -- consisting of $1.98 million owed to the Overseas-Chinese Banking Corporation Ltd. and $1.82 million to the Industrial & Commercial Bank Ltd., both Singapore-based -- were guaranteed by Aster Dharma.
The two banks filed a bankruptcy petition in June against Aster Dharma, a subsidiary of PT Dharmala Inti Utama, for refusing to guarantee its Singaporean subsidiary's debts. The petitions were filed at the Central Jakarta Commercial Court.
The court rejected the bankruptcy petition. This prompted the two banks to appeal to the Supreme Court, which then received the appeal and declared the plastic packaging company bankrupt.
Meanwhile, the Supreme Court accepted a civil review proposal on Sept. 7 filed by listed food franchisee PT Putra Sejahtera Pioneerindo (PSP). The decision saved the company from being declared bankrupt.
PT Nikko Securities Indonesia filed a bankruptcy petition against PSP in mid-April, claiming that the latter failed to pay Rp 7.5 billion (around US$860,000) in promissory notes which matured in January last year. But the petition was rejected.
The securities company then made an appeal and the Supreme Court accepted and declared PSP bankrupt. (udi)