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)