Fadel granted payment delay

Fadel granted payment delay

JAKARTA (AFX-ASIA): The Jakarta Commercial Court has granted Bukaka Group founder Fadel Muhammad a 45-day debt payment suspension on Rp 33.5 billion (US$3.5 million) owed to Bank IFI and Rp 80 billion in personal debts owed to the Indonesian Bank Restructuring Agency (IBRA), Judge Hasan Basri said.

Basri said Fadel should be given a chance to negotiate his debt restructuring with creditors and is deemed capable of repaying the debt as he has personal wealth worth some Rp 50 billion tied up in nine companies.

After the 45-day suspension period, Fadel's creditors will meet to decide whether negotiations on his debt restructuring should continue, Basri said, adding that discontinuation will mean bankruptcy status for Muhammad.