IBRA files bankruptcy suits against Ongko

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)