Fadel declared bankrupt

JAKARTA (JP): The Jakarta Commercial Court declared on Tuesday businessman Fadel Muhammad bankrupt after his bank rejected his proposal to restructure Rp 33.5 billion (US$3.5 million) in personal debt.

"The verdict was made as the creditor refused Fadel's debt restructuring proposal," presiding Judge Hasan Basri said.

The court had earlier granted Fadel a 45-day debt payment suspension to give him a chance to negotiate his debts with the creditor.

Fadel, a former senior executive of the Bukaka business group and deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin), was taken to the bankruptcy court last month by Bank IFI for his failure to repay his personal debts.

Bank IFI's lawyer Hotman Paris Hutapea said the court- appointed receiver would calculate Fadel's personal wealth to repay his debt.

According to the court Fadel has personal wealth worth some Rp 50 billion tied up in nine companies. (04)