Hutama Karya faces second legal suit

JAKARTA (JP): Toronto-based Canadian Imperial Bank of Commerce (CIBC) has filed a bankruptcy claim against PT Hutama Karya, the second suit lodged against the state-owned construction company this year.

CIBC lawyer Rahmat Bastian from Dermawan & Co. law firm said Hutama Karya had failed to repay US$1 million in promissory notes due on May 4 this year.

"In the promissory note, it is stated that Hutama Karya unconditionally promises to pay the said amount of money to the bearer of the note upon maturity," Rahmat told The Jakarta Post on Wednesday.

He said CIBC had proved that Hutama Karya had 61 other creditors, two of which are the Hong Kong-based Tokai Asia Limited and Taiwan-based Master Link Securities.

Hutama Karya also owed $3 million and $2 million in promissory notes to the Hong Kong and Taiwan companies, Rahmat said.

According to the 1998 bankruptcy law, a bankruptcy petition is valid only if the plaintiff is able to prove that the claimed party has at least two creditors. In addition, the plaintiff needs to prove that the claimed party has at least one matured debt.

Hutama Karya was brought to the Jakarta Commercial Court early this year for a similar offense. PT Jaya Readymix and PT Primacoat Lestary, which jointly filed the bankruptcy petition against the state construction company for not paying Rp 2.3 billion (about $333,000) in construction fees, won the case.

However, the Supreme Court -- in its April 6 civil review decision -- annulled the court's decision and saved the company. According to the Supreme Court, the bankruptcy petition was invalid because the plaintiffs could not prove the defendant had only one creditor.

Hutama Karya, one of the state construction firms under the supervision of the Ministry of Public Works, was reported to have settled its liability to one of the plaintiffs after the court issued its verdict.

Rahmat said CIBC, through its lawyer, had proposed the court name J. Cemby Hutapea from Kemalsjah, Cemby & Avriline law firm as a provisional court receiver to oversee Hutama Karya during the court proceeding.

"During the said time period Hutama Karya is banned from making any payments to creditors, transfer of assets and pledge of assets until the court reaches its ruling," Rahmat added, saying that the first hearing had yet to be decided. (udi)