Gemala refutes inclusion on debtor list
Gemala refutes inclusion on debtor list
JAKARTA (JP): Gemala Industries Ltd. disputed on Friday its
inclusion on a list of 26 uncooperative debtors issued by the
Indonesian Bank Restructuring Agency (IBRA), saying the ruling
was legally flawed and damaged its reputation.
Gemala Industries chairman and chief executive officer Edward
Wanandi said IBRA's rating of the firm showed complete disregard
for legal points of contention which were clearly explained in
his letters to the agency on June 16 and June 18.
IBRA's classification of uncooperative debtors covered those
who failed to sign letters of commitment and undertaking to
restructure their debts under conditions set by the agency. In
IBRA's announcement on Thursday, Gemala Industries was listed as
an uncooperative debtor with Rp 238 billion in liabilities.
"We have clearly explained in the letters that Gemala
Industries Ltd. is a company incorporated and based in Ontario,
Canada, and therefore is not subject to Indonesian laws," Edward
stated in a letter of protest to IBRA deputy chairman Eko Santoso
Budianto on Friday.
The IBRA list inaccurately identified PT Gemala Industries
Ltd; PT denotes a limited liability company incorporated under
Indonesian law.
He confirmed that Gemala Industries obtained loans from the
branches of Bank Bumi Daya (BBD) and Bank Negara Indonesia (BNI)
in the Cayman Islands based on loan agreements made under the
laws of New York State in the U.S.
"But as I explained in my June 16, 1999, letter to IBRA, which
was supported with the necessary legal documents, Gemala
Industries restructured its loans on Aug. 18, 1998, under new
credit agreements involving General Electric Capital Corporation
as a new lender and BBD and BNI as old lenders. Gemala Industries
also has paid part of its debts under the new credit agreements
which were made also under the laws of New York State," Edward
said.
"Because Gemala Industries is legally bound now by the credit
agreements, it cannot sign the letter of commitment and
undertaking which was unilaterally set by IBRA without the prior
consent of the three creditors."
He added that Gemala Industries would be forced to default on
its debts if it signed the letter of commitment as demanded by
IBRA without prior consent of the creditors.
"If IBRA takes over Gemala Industries' debts to BBD and BNI,
it shall be bound by the conditions of the credit agreements
under the laws of New York State," Edward said.
He appealed to IBRA to thoroughly study legal aspects of a
classification before making public statements because "the wrong
judgement has damaged our credibility".(vin)