IBRA revokes lawsuit against A Latief after debt repayment

JAKARTA (JP): Indonesian Bank Restructuring Agency (IBRA) has revoked its bankruptcy petition against trading firm PT A Latief Corporation following the US$15 million debt repayment by the latter to the agency.

"The debt repayment is proof of PT A Latief's good intentions all through the process of debt negotiations over the past months with its creditors," the company said in a statement on Tuesday.

IBRA took PT A Latief and two other debtors to commercial court in late March for their alleged failure to repay debts to the agency.

The other companies taken to court by the agency were crude palm oil processor PT Sumi Asih, which owes the agency Rp 73.94 billion and $6.73 million, and PT Ometraco Corporation, which has $53.18 million in unpaid debts.

PT A Latief said the delay in the debt repayment to IBRA was not at all intentional.

The company said it initially owed a total $30 million debt to syndicated banks consisting of Bank Niaga, Bank Internasional Indonesia (BII), Bank Danamon and Bank Pelita.

The debts owed to Bank Niaga and BII, amounting to $17.5 million of the total syndicated loan, were repaid earlier, while the remaining debts to the other two banks were pending due to the need of further debt negotiations with IBRA because the two banks -- Bank Pelita and Bank Danamon -- were respectively closed and taken over by the government.

IBRA public relations officer Franklin Richard confirmed IBRA had revoked its bankruptcy suit against PT A Latief on Tuesday upon receiving $14.75 million in cash as a debt repayment from the trading firm.

"IBRA has recovered 100 percent of the loan principal ($12.5 million) and over 50 percent of the overdue interest payments," Franklin said.

IBRA -- pressured to recover trillions of rupiah in receivables derived from the debtors of the closed, taken over and problem banks -- has taken legal action against these debtors through, among others, the commercial court. (udi)