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.