Fri, 13 Nov 1998

Financial bodies bring Dharmala Agrifood to court

JAKARTA (JP): Three financial institutions -- publicly listed Bank Niaga, ING Indonesia Bank and International Finance Corporation (IFC) -- have jointly filed a bankruptcy petition against PT Dharmala Agrifood at the Jakarta Commercial Court for the latter's failure to repay debts.

According to the court data, the three financial institutions are seeking the repayment of their loans worth Rp 16.04 billion and US$51.7 million.

Dharmala Agrifood had obtained loans worth Rp 16.04 billion from Bank Niaga, US$16.7 million from ING Indonesia Bank and US$35 million from IFC, a subsidiary of the World Bank Group respectively.

The loans fell due on May 6, Feb. 12 and Sept.30 this year but Dharmala Agrifood was not able to make any payment.

The plaintiff's lawyer, Kartini Mulyadi of Kartini Mulyadi law firm, demanded the court declare the company bankrupt.

A lawyer representing PT Dharmala Agrifood, Hotman Paris Hutapea of Makarim and Taira said, however, that he was ready to defend his client in court.

"We will just have to wait and see. I will defend my client and talks are underway with the creditors to settle the debts," he told The Jakarta Post on Thursday.

Dharmala Agrifood, listed on the Jakarta Stock Exchange, is 63.16 percent owned by PT Centra Ekacitra and 36.84 percent by the public. The company produces animal feed with a production capacity of 480,000 tons a year.

The company, a member of the diversified Dharmala Group, recorded a net loss of Rp 167.9 billion last year compared to a net profit of Rp 18.02 billion in 1996.

Ometraco

In another development, the Jakarta commercial court might declare a multifinance firm PT Ometraco Multi Artha (OMA), a subsidiary of the publicly listed PT Ometraco Corporation, bankrupt on Friday after it failed to clinch a debt settlement agreement with its creditors.

Presiding judge Haryono, who chaired the hearing of the Ometraco bankruptcy case on Thursday, said that the court had learned that a majority of OMA's creditors had rejected its debt restructuring proposal.

"The court will announce its verdict tomorrow." he said.

According to the existing law, if creditors reject a debtor's rescheduling proposal, the court will declare the debtor bankrupt.

The plaintiff's lawyers said that around 83 percent or 28 creditors had rejected the debt proposal.

"Since most creditors have rejected the debt rescheduling proposal, the court must declare the company bankrupt," Kitty Sugondo Kramadibrata of Kramadibrata, Karim, Sani, Manihuruk said. (aly)