Bank Bali faces lawsuit in loan repayment dispute

Bank Bali faces lawsuit in loan repayment dispute

JAKARTA (JP): Lawyer Sudjono representing Bambang Sutrisno, a
former shareholder of the now defunct Bank Surya, rejected as
libelous a statement by Bank Bali that his client had moved most
of his assets to Singapore.

"The statement is groundless and amounts to defamation of my
client," Sudjono said last week. He disputed claims made by
lawyer, Hotman Paris Hutapea, representing Hong Kong-registered
Bali International Finance Ltd., a unit of Bank Bali, in its
civil lawsuit against Sutrisno in a Singapore court.

Hotman argued that the court action was the only way for the
bank and eight other Indonesian and foreign creditors, who
provided a syndicated loan to PT Surya Supratama Finance, to
recoup their US$16.5 million credit.

The loan dispute occurred when the Surya Supratama was unable
to repay the loans, prompting the nine creditors from the
syndicate to file a lawsuit in Singapore against Sutrisno.

Bank Bali's move has been criticized by legislators and local
attorneys as discrediting Indonesia's judicial system.

Sutrisno, also a former controlling shareholder of Surya
Supratama, personally guaranteed the syndicated loan under an
indemnity and guarantee agreement with Bali International.

"Bank Bali is required to produce legal evidence that Sutrisno
moved his assets to Singapore, otherwise its management faces the
risk of litigation for defamation," added Sudjono.

Sudjono claimed that Sutrisno had sold his entire stake in
Surya Supratama on Sept. 8, 1997, while Bank Bali's Director
Firman Soetjaja said the loan default occurred in March 1998.

"Hence, the debt is no longer the responsibility of Sutrisno
but that of the new owners," Sudjono insisted.