Bankruptcy claim over Modernland approved

Bankruptcy claim over Modernland approved

JAKARTA (JP): In only its second decision since opening in
August, the Jakarta Commercial Court approved on Monday the
bankruptcy petition filed by Hussein and Johan Subekti against
property firm PT Modernland Realty for a Rp 94.13 million (about
US$10,460) debt.

Trading of Modernland Realty stocks were suspended on Monday
following the court decision in the morning, the Jakarta Stock
Exchange announced in a statement.

Hussein and Johan Subekti filed their claim with the
commercial court late last month after Modernland Realty failed
to repay their down payment to purchase apartments it developed.

The bankruptcy law allows either party to appeal to the
Supreme Court. The appeal must be heard within 30 days.

In its one other verdict, the commercial court rejected the
claim filed by American Express Bank last month against publicly
listed PT Ometraco Corporation, on the grounds the plaintiff's
charge overlapped with its suit against Ometraco subsidiary PT
Ometraco Multi Artha.

Chairman of the Bankruptcy Litigation of Lawyers Club, Hotman
Paris Hutapea, who is also a bankruptcy attorney of Makarim and
Taira S law firm, said the panel of judges should not have
approved the claim against Modernland Realty because both parties
were still seeking an out-of-court settlement.

"This decision will only spur other small creditors to file
more petitions to the court seeking more bankruptcies," he told
The Jakarta Post separately.

He said that although the country's bankruptcy law did not
stipulate the minimum amount of debt which could be brought
before the commercial court, Modernland Realty's debt obligation
to the plaintiffs was relatively small.

"With such a small amount, the judge should have been wiser
with his decision," he said.

Lawyers for both the plaintiffs and Modernland Realty were not
available for comment on Monday.

Hotman said Modernland could appeal to the Supreme Court, but
the court's decision had already tarnished the property firm's
image, "and that is bad". (aly)