IBRA sues PT Dharmala

Fri, 02 Mar 2001 | Source: AFP

JAKARTA (AFX-ASIA): The Indonesian Bank Restructuring Agency (IBRA) has filed a bankruptcy suit against PT Dharmala, a company owning a stake in now bankrupt PT Dharmala Sakti Sejahtera, for an alleged Rp 28 billion in unpaid matured debts, said a lawyer.

IBRA lawyer Dwi Sardjono said the sued company originally owed debts to state-owned Bank Bumi Daya (now merged into Bank Mandiri) and state-owned Bank Rakyat Indonesia, before the bad loans were finally transferred to IBRA.

The loans were extended in 1988 and matured a year later but were renewed a number of times, until final maturity in 1998 when the banks no longer renewed the loans.

Sardjono said companies under the Dharmala Group are considered recalcitrant debtors as they have not shown good faith in negotiating debt restructuring.

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