Court turns down bankruptcy petition against 'ANteve'
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)