Commercial Court hears first bankruptcy case
Commercial Court hears first bankruptcy case
JAKARTA (JP): The country's newly established commercial court
began hearing the first bankruptcy cases on Monday, pitting PT
Karabha Digdaya, a real estate and golf course developer, against
construction firms PT Jaya Obayashi and PT Nusa Raya Cipta.
A three-judge panel at Central Jakarta Commercial Court heard
the charges against Karabha brought by the two construction
firms.
Lawyers for the plaintiffs, Hotman Paris Hutapea and Jamaslin
Purba of law firm Makarim and Taira S, read out the charges
against PT Karabha to the court panel chaired by Haryono.
They said that Karabha owed a total of Rp 15.3 billion
(US$1.33 million) in unpaid construction fees and interest for
the development of the Emerald golf course and clubhouse in
Cimanggis, Bogor, West Java.
PT Karabha Digdaya is owned by Judith Soeryadjaya, the
daughter of William Soeryadjaya, the former owner of the
country's largest carmaker PT Astra International.
Defense lawyer Yan Apul of Yan Apul and Partners, acknowledged
that his client, PT Karabha, owed the construction fees but said
the amount was Rp 4.3 billion less than that claimed.
"My client owes only Rp 11 billion in construction fees to the
construction firms," he said, pointing out that his client had
total credits worth Rp 400 billion with about 40 creditors.
Karabha has already been sued by publicly listed Lippo Bank
and Bank Internasional Indonesia (BII) for its failure to repay
loans worth Rp 200 billion to the two financial institutions.
PT Jaya Obayashi and Nusa Raya Cipta filed the case on Sept.
1, the first bankruptcy claim since the implementation of the
country's new bankruptcy law on Aug. 20. The two companies are
demanding the court declare Karabha bankrupt and allow its assets
to be sold off, including Emerald Golf Course and clubhouse, to
repay the funds owed.
Monday's hearing was packed with reporters and observed by the
assistant general consul of the International Monetary Fund
(IMF), Sean Hogan.
The hearing was marked by heated arguments between the lawyers
of the disputing firms.
Yan Apul, representing Karabha, submitted a document
containing his client's proposal to suspend the payment of the
funds owed.
Presiding judge Haryono accepted the document and adjourned
the hearing until Thursday to allow the commercial court to
verify the documents.
"We postpone the hearing to allow the court to verify the
documents and the second hearing will be held on Thursday, Sept.
17," Haryono said.
The commercial court will settle bankruptcy cases under the
new law which allows 30 days for settlement and 30 days for
appeal.
The Indonesian government revised the old bankruptcy law and
set up a commercial court as part of the package of reforms
agreed in return for the IMF's US$43 billion bailout to salvage
the country's wrecked economy.
The old bankruptcy law, which dates back to 1906 and the Dutch
colonial administration, was considered insufficient in the wake
of rising business collapses sparked by the country's economic
downturn.
Central Jakarta Commercial Court also held another hearing on
Monday, pitting PT Lelco Trindo against PT Mustika Princess Hotel
but the hearing was canceled as the former revoked its bankruptcy
claim.
Lelco Trindo had filed a case against Mustika Princes Hotel,
the owner of the Sheraton International Hotel Yogyakarta early
this month after the hotel defaulted on the payment of
construction fees to Lelco worth Rp 319.9 million.
"We have reached an out-of-court settlement," Denny Kailimang,
representing Lelco, said.
The commercial court is to hold another hearing on Tuesday
between American Express Bank and cocoa producer PT Davomas
Abadi.
State-controlled Bank Negara Indonesia (BNI) and BII filed
early this month a bankruptcy claim at Central Jakarta Commercial
Court against listed PT Ometraco Multi Arta and Ometraco
Corporation.
The hearing is scheduled for Sept. 18 for the former and Sept.
21 for the latter. (aly)