Court turns down bankruptcy petition against 'ANteve'

JAKARTA (JP): The Jakarta Commercial Court turned down on Thursday a bankruptcy petition against local private television station ANteve, a unit of the Bakrie Group.

The petition was jointly filed by Hong Kong-based IBJ Asia Ltd., Korea Commercial Finance Ltd and Seoul-based Hanareum Banking Corp.

Presiding Judge Sihol Sitompul announced that the court rejected the three financial institutions' bankruptcy petition against ANteve because the station's US$70 million debt to the former would not be due until 2002.

He also maintained that ANteve could not be declared bankrupt after it defaulted on the payment of a $3.675 million sinking fund due on June 11, 1998.

"It is not ANteve which is responsible for the sinking fund but it is PT Bakrie Investindo as its guarantor," he said.

"So ANteve cannot be declared bankrupt," he said.

The bond holders and Bakrie Investindo, the guarantor, signed an agreement early in 1997 which, among other things, stipulated that Bakrie Investindo had to pay the interest and principal of the bonds whenever ANteve defaults on either the sinking fund or the interest on the bond.

A sinking fund is money which a bond issuer has to pay over a fixed period of time to assure bankers that it is able to repay the bonds when they fall due.

The three foreign investment banks filed a bankruptcy claim against ANteve early this month seeking the recovery of the $70 million bonds after ANteve defaulted on the payment of the sinking fund due on June 11.

Lawyer for the banks Joni Aries Bangun of Hanafi & Ponggawa Law firm said that he would consider an appeal to the Supreme Court after consulting with his clients.

"Let's see, we might appeal," he said after the hearing.

The newly enacted bankruptcy law allows any party to appeal to the Supreme Court within eight days with the petition to be heard within 30 days.

Joni said his clients would file another bankruptcy claim against Bakrie Investindo, the guarantor of the sinking fund.

ANteve's lawyer Tommy S. Bhail of the Fuady, Tommy, Aji Wijaya law firm said the Jakarta Commercial Court had studied the case carefully and had come up with a very satisfactory ruling.

"I think this is the best decision," he said with a smile.

Of ANteve's total US$70 million in bonds, KEB (Asia) Finance Ltd. holds $20 million, IBJ Asia Ltd., Korean Commercial Finance Ltd., and Shinhan Investment Bank each hold $15 million, and J.P. Morgan Securities Asia Ltd holds another $5 million.

The bankruptcy claim against ANteve, famous for its sports and entertainment programs, was the first of its kind against a media business corporation since the introduction of the country's bankruptcy law seven months ago. (aly)