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)