Bambang's consortium to pay Summa's debts

Bambang's consortium to pay Summa's debts

JAKARTA (JP): President Soeharto's son, Bambang Trihatmodjo
and Johannes B. Kotjo the likely new owners of the assets of the
defunct Bank Summa issued a joint statement that they would repay
the Bank's outstanding debts within two months.

The two intend to purchase the assets of the dissolved Bank
Summa through their consortium PT Bhakti Karya Indah Permai
(BKIP).

Johannes B. Kotjo said in Jakarta yesterday that the company
would pay off the bank's debts of around Rp 600 billion
(US$247.62 million) to the central bank and other financial
institutions before the due date in two months.

"We were given two months to pay off the debts, but we will
probably pay the debts before the two months is up," Johannes
said.

He said that his company would not sell it's assets to repay
the debts, but instead would make major efforts to induce the
consolidated bank's debtors to repay their debts which amount to
some Rp 250 billion.

The company will develop the other productive assets of the
bank to improve it's liquidity, he said.

BKIP has recently been approved to take over the remaining
assets of Bank Summa, which was suspended in 1992 for its failure
to meet financial obligations.

Although many of the bank's assets have been sold to repay the
depositors' money, it's debts to the central bank and other local
financial institutions remain outstanding, amounting to a total
of Rp 600 billion.

Johannes has set a target for his company to be able to
recover at least 50 percent of outstanding debts paid by the
bank's debtors, with the help of the related government agencies.

Some of the most valuable assets of Bank Summa are the 45-
hectare Darmo Satellite Town housing complex in Surabaya (East
Java), and the Jakarta International Trade Center and Paranusa
Sari Garden Hotel, both in Jakarta.

BKIP has approved its subsidiary commercial property operator
Bhuwanatala Indah Permai, to buy 36 percent of PT Darmo Satellite
Town shares. (02)