Creditors to auction Fiskaragung assets

Creditors to auction Fiskaragung assets

JAKARTA (JP): Creditors of bankrupt PT Fiskaragung Perkasa
will sell fixed assets of the publicly listed salt producer
through an asset auction or a direct offer to an interested
investor, an official said.

Tuti Simorangkir from Makarim & Taira S. law firm, who is
acting as the court-appointed receiver for Fiskaragung, said
creditors were not interested in taking over the bankrupt company
but expressed interest in selling it to a third party.

"The creditors don't mind if it has to go through an assets
auction or a direct sale to an interested investor, as long as
they can get their money back soon."

But she said sale of the assets at auction would end the
company's chances of continuing its operations.

"If it happens, Fiskaragung will be immediately liquidated."

Fiskaragung's concern is for its operations to continue, Tuti
added.

Its total debts are US$40.5 million and Rp 18 billion based on
the latest data, Tuti said.

"The creditors are expecting Fiskaragung could be purchased by
investors at the price of its total debts."

One of the creditors' lawyers, Rafael Adrian from Taira Faisal
& Panggabean law firm, said the total value of Fiskaragung's
assets would not cover its total debts of over $40 million.

"The value of the three lines of equipment Fiskaragung
possesses at its factory are not worth anywhere close to the
amount of debts the company accrued to buy such equipment."

He alleged there were indications that part of the loans for
equipment was diverted.

"There was a missing link between the total loan received and
the value of the assets Fiskaragung currently possess," he said.

Fiskaragung was declared bankrupt in late November by the
Jakarta Commercial Court after it failed to reach a debt
restructuring agreement with its creditors during a debt payment
suspension (PKPU) period granted by the court.

PKPU is the standstill period during which an indebted company
must come up with a debt-restructuring proposal. It must be
approved by a majority vote of creditors.

PKPU allows the company a maximum 270-day period to negotiate
the debt-restructuring agreement with its creditors; failure to
reach an agreement within the period will lead to a declaration
of bankruptcy by the court.

Fiskaragung's majority creditors were not satisfied with the
debt-restructuring plan and voted to reject it within the first
four months of the PKPU period.

Ten foreign creditors jointly filed a bankruptcy suit against
Fiskaragung in the Jakarta Commercial Court in May for failure to
repay $29 million in matured debts.

The foreign creditors are from Hong Kong, South Korea,
Malaysia and Singapore.

The Hong Kong creditors are Hanil Leasing & Finance (HK) Ltd.,
Hanmi Leasing and Finance (HK) Ltd., KEB Leasing and Finance
Ltd., CBK Leasing and Finance (HK) Ltd., ORIX Asia Limited and
Hong Kong First Citicorp Leasing (HK) Ltd.

Kyongnam Bank of Korea and Kookmin Bank are from South Korea,
AMMB International from Malaysia and KDLC Leasing from Singapore.
(udi)