Hutama Karya faces second legal suit

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)