Court seizes company's assets

Court seizes company's assets

SURABAYA: The local district court has ordered the government
to seize the remaining assets of a bankrupt company to cover its
displaced workers severance pay.

The court said PT Multi Manao Indonesia has neglected its
obligation to pay a total of Rp 561 million in severance to its
250 workers, Antara reported. The news agency did not describe
the nature of Multi Manao's business.

The assets to be seized include a factory building and
warehouse, including the land in the Rungkut Industry area, an
office and its land on Jl. Manyar Kartia, and another office and
its land on Jl. Kutisari Indah Barat. There is also another
factory building and warehouse with equipment and machinery in
the nearby city of Gresik.

The court order follows a petition from the workers.

The workers lost their jobs in 1994 when the company applied
for bankruptcy. The Ministry of Manpower agreed to the company's
plan to layoff the workers on condition that their rights,
including severance pay, were met.

Multi Manao then declared it couldn't afford the severance
pay. (emb)