Banks suit claim 'ANteve' bankrupt

Banks suit claim 'ANteve' bankrupt

JAKARTA (JP): Three foreign investment banks filed a
bankruptcy claim on Thursday against private television station
PT Cakrawala Andalas Televisi, known as ANteve.

Lawyer Joni Aries Bangun for the banks Hong Kong-based IBJ
Asia Ltd. and Korea Commercial Finance Ltd, and Seoul-based
Hanareum Banking Corp. said that his clients were seeking to
recover the money they invested in the US$70 million worth five
year bonds issued by the television station.

He said that the three banks also represented the other
bondholders, Hong Kong-based Shinhan Investment Bank and J.P.
Morgan Securities Asia Ltd..

Bangun said that although the bonds would not mature until
Feb. 11, 2002, ANteve had not paid the $3.675 million in sinking
funds due on June 11, 1998.

A sinking fund is paid by bond issuers after a fixed period to
assure investors that it can pay for the bonds when they fall
due.

According to an agreement signed between ANteve and the bond
holders in 1997, the issuer was to pay the interest and principal
of the bonds whenever it defaulted on either the sinking fund or
the interest owed on the bonds.

However, ANteve's lawyer, Tommy S Bhail of Fuady, Tommy and
Aji Wijaya law firm said after the hearing Thursday that there
was no reason for the foreign companies to file a bankruptcy
petition, because the sinking fund was not classified as debt
that should be paid by ANteve to its bondholders.

"So there is no obligation on my client to the three financial
institutions," he said.

Moreover, he said, ANteve and the three financial firms were
currently having serious negotiations to restructure the private
television's debts.

"We had a negotiation only on Jan. 11 to restructure the debt.
So why did they file the bankruptcy claim?" he said to
journalists after the first hearing of the case.

ANteve, one of the country's five television stations famous
for its entertainment and sports news, is the first television
station taken to court for bankruptcy. The court proceeding
officially began in September 1998.

Presiding judge Sihol Sitompul, also chairman of the Jakarta
Commercial Court, adjourned the hearing until Jan 21.

"I ask the debtors's lawyer to bring more proof and witnesses
in the next hearing," he said. (aly)