Bankruptcy suit filed against Polysindo

JAKARTA (JP): Bank Inter Pacific filed a bankruptcy suit against publicly listed textile concern Polysindo Eka Perkasa at the Jakarta Commercial Court for failing to repay US$1.5 million in promissory notes, the plaintiff's lawyer said.

Benny Harman from the law firm Abdul Hakim Garuda Nusantara & Partners told The Jakarta Post on Wednesday the promissory notes matured in May last year.

Benny said his client sent two warning letters to Polysindo demanding payment of the matured promissory notes in June 1999, but did not receive a response.

Bank Inter Pacific filed a bankruptcy suit earlier this month to protect its rights in recouping the matured loans it extended to Polysindo, Benny said.

He said the bankruptcy suit against Polysindo was filed according to the requirements set out by existing law.

According to the 1998 Bankruptcy Law, the party filing a bankruptcy suit must prove the defendant has one matured debt and at least two creditors.

"My client is legally entitled to the proceeds of the matured promissory notes," he said.

In its suit Bank Inter Pacific demanded repayment of the notes' principal, amounting to $1.5 million, plus unpaid interest payments and late-payment penalties totaling $279,000.

Polysindo is an affiliate of Texmaco Group, which currently is entangled in a loan scandal. (udi)