Bankruptcy suit filed against Polysindo

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)