Aster Dharma disputes bankruptcy verdict
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)