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)