Court rejects bankruptcy petition against PT Jasindo

JAKARTA (JP): The Jakarta Commercial Court rejected on Tuesday a bankruptcy petition filed by Taiwan-based Chinatrust Commercial Bank (CCB) against state-owned general insurance company PT Asuransi Jasa Indonesia (Jasindo).

Presiding judge Mahdi S. Nasution said in the verdict that the plaintiff had failed to show adequate proof for it's claim that it was a valid creditor to Jasindo.

The plaintiff's lawyer, Rahmat Bastian from Dermawan & Co. law firm, argued that his client held adequate proof in the form of a certificate of ownership of a US$5 million promissory note issued by a custodian company.

"According to the guarantee agreement with Jasindo, the ownership certificate issued by the custodian company is a strong legal document proving that my client is a valid creditor," Rahmat said.

PT Tripatria Citra Sarana issued in May 1997 promissory notes worth US$50 million. The Singaporean branch of the Union Bank of Switzerland (UBS) acted as the underwriting agent, with Jasindo as its trustee or guarantor.

UBS then sold these promissory notes to several parties, including CCB, which bought $5 million of the total $50 million.

The promissory notes were deposited by the purchasers in a custodian company called Euroclear, which subsequently issued a certificate of ownership to every corresponding purchaser of the notes.

Jasindo's lawyer, Lucas S. Halim from Lucas S.H. & Partners, said transaction of the promissory note purchasing agreement -- involving UBS, Tripatria and Jasindo -- was biased against Jasindo.

"Why did Jasindo have to take over all those debts?" he said.

Rahmat said he would appeal the verdict to the Supreme Court.

CCB filed in late August a bankruptcy claim against Jasindo at the Jakarta Commercial Court, claiming that Jasindo as a debt guarantor had failed to take over a matured $5 million promissory note issued by Triapatria. (udi)