Bank Artamedia sues Green Garden

JAKARTA (JP): Bank Artamedia has filed suit against PT Tamara Green Garden, demanding the property developer repay about Rp 11.5 billion (US$1.36 million) in loans.

The Jakarta Commercial Court said on Monday that the first hearing on the bankruptcy petition would be held on Nov. 16.

According to court documents, Tamara secured Rp 10.5 billion from Bank Artamedia in 1996, but was unable to settle the debt due to financial difficulties. Including interest and penalties, the amount of the loan has increased to Rp 11.5 billion.

Tamara Green Garden is also indebted to Bank Nomura International, Bank Nusa International, Bank Lippo and the Bank Modern and Bank Sejahtera Bank Umum (SBU).

The government liquidated the latter two banks earlier this year.

Bank Artamedia is one of the four medium-size banks which is set to merge with publicly listed Bank Mashill early next year in an effort to face stiff competition in the banking industry.

Bank Ciputra and Jayabank International are also included in the merger plan.

Bank Artamedia's bankruptcy claim is the fifth petition by a commercial bank against debt-ridden firms since the commercial court opened following the enactment of the country's bankruptcy law in August.

Bank PDFCI is suing cardoard box producer PT Sarana Kemas Utama (SKU) and Bank Niaga initiated legal proceedings against PT Bajamarga Kharisma Utama (BKU).

The Jakarta branch of American Express Bank of Jakarta brought an insolvency case against cocoa producer PT Davomas Abadi, but the parties agreed to an out-of-court settlement last month. (aly)