Car body plant to go bankrupt

Car body plant to go bankrupt

BOGOR (JP): PT Delima Mandiri, a small-scale company offering
car body manufacturing services, is on the brink of bankruptcy
due to arrears its two large-scale partners owe, an executive
said yesterday.

Owner of the company, Widharta, said that the partners did not
pay for 24 bus bodies the company built at a combined cost of Rp
468 million (US$191,000).

"I'm in deep trouble now as the bank has reminded me of my
loans, which were used to finance the construction of the bus
bodies," he said.

He explained that his company constructed the bus bodies based
on an agreement with the partners on Sep. 22, 1995.

All 24 bus bodies were delivered, but the partners failed to
meet all obligations covered in the agreement, Widharta said,
without giving the names of the partners. (24/hhr)