IBRA files bankruptcy suits against Ongko

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) filed bankruptcy suits on Friday against four subsidiaries of the Ongko Group for failure to pay their matured debts, according to a document from the Jakarta Commercial Court.

The four companies are PT Indoland with matured debts amounting to Rp 3.3 billion, PT Citra Mahkota Abadi (Rp 103.2 billion), PT Mustika Niagatama Nusantara (Rp 82.5 billion) and PT Landasan Terus Sentosa (Rp 270.1 billion).

"IBRA bankruptcy suits against four companies have been submitted this afternoon. The (Jakarta Commercial) Court will decide the schedule for the first hearing of each case on Monday," a court clerk said Friday night.

The documents said that IBRA acted on behalf of Bank Mashill, Bank Bali and Bank Danamon which provided the loans to the four companies.

Bank Mashill was one of banks closed by the government following massive bank runs in early 1998. Bank Bali and Bank Danamon were put under IBRA management after their shareholders failed to repay their obligations to the government.

Each debt as stated in the documents matured between February 1998 and September 1998.

IBRA, so far, has filed bankruptcy suits with the commercial court against five uncooperative debtors but none of the cases have been won by IBRA .

The companies in default are PT Tirtamas Comexindo, PT Westkalindo Pulp Papermill, PT A Latief Corporation (out-of-court settlement), PT Ometraco Corporation and PT Sumi Asih.

IBRA has been criticized for being too lenient towards the country's recalcitrant debtors.

IBRA currently controls about Rp 220 trillion of bad debts transferred from domestic banks. In addition, the agency controls about Rp 600 trillion in assets transferred from former bank owners and closed banks.(udi)