Bayu Buana fights Nikko bankruptcy claim

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)