BII sues debt guarantors

BII sues debt guarantors

JAKARTA (JP): Publicly listed Bank Internasional Indonesia
filed a bankruptcy claim against the debt guarantors of PT
Bentala Coal Mining for failing to take over the company's Rp
13.5 billion (about US$2 million) matured debt.

The plaintiff's lawyer, Abdul Hakim G. Nusantara, said the
suit was filed against the guarantors to ensure that all of the
debts could be recovered.

"The guarantors are in the same position as the borrower in
their obligation to repay debts under the debt guarantee
agreement," Hakim said.

Named in the suit as guarantors are individuals Abu Hermanto
and Wahyu Budiono and a parent company, PT Surya Andalas
Corporation.

In most previous cases, creditors filed bankruptcy claims
against their clients instead of debt guarantors.

The principal debt of Bentala Coal matured on May 31 this
year, but the interest payments are more than a year overdue,
according to Hakim.

The presiding judge in the case, Nuraslam Bustaman, adjourned
the hearing on Monday for a week to hear the response of the
defendants. (udi)