Bayu Buana fights Nikko bankruptcy claim

JAKARTA (JP): Publicly listed travel company PT Bayu Buana disputed on Wednesday a bankruptcy petition filed by PT Nikko Securities Indonesia (NSI).

Bayu Buana attorney Herfian of Lontoh and Kailimang law firm termed untrue Nikko's claim that his client defaulted on payment of Rp 7.5 billion in commercial notes.

He told the court during the case's first hearing that all the payments on the debt were rescheduled in February this year.

Bayu Buana made two commercial paper issuances on July 7, 1997, holding face value of Rp 4 billion and Rp 3.5 billion and to mature on Jan. 8, 1998, and Jan. 9, 1998, respectively.

The first was purchased by PT Indolife Pensiontama and the other by PT Reksa Dana Nikko Inti Nusantara, the lawyer said.

"My client does not know about owing a total debt of Rp 7.5 billion in commercial papers to NSI," he said

"Besides the fact that the commercial papers are not yet due, NSI does not have the right to file a bankruptcy petition against Bayu Buana because Nikko Securities is not Bayu Buana's creditor."

Nikko's lawyer Darwin Marpaung from PAAS law office argued that the holder of the commercial paper was considered the creditor of the issuer, in this case Bayu Buana, because it was transferable.

He said NSI also was identified as Bayu Buana's creditor in the auditor's report on the travel firm.

"I believe Bayu Buana has not acted in good faith relating to the commercial paper owed to my client," he said.

Bayu Buana, he claimed, promised to make 15 installment payments on the debt, but the checks bounced.

"NSI cannot cash those checks because there are no funds for the issued checks," he said.

Presiding judge Untung Haryadi accepted evidence submitted by both parties and scheduled an April 28 hearing to deliver his verdict.

"We will take time for evaluation and review of evidence. The court is postponed until next week," he told the court. (02)