IBRA warns big debtors of legal actions

IBRA warns big debtors of legal actions

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
cranked up the pressure on the largest debtors of state banks by
warning on Thursday it would soon seize in distress the assets of
parties which failed to cooperate in debt restructuring talks.

Head of IBRA's loan resolution and collection department Irwan
Siregar issued the warning after 26 major debtors with more than
Rp 14.70 trillion (US$2.16 billion) in liabilities failed to sign
letters of commitment (LoC) on debt restructuring by the June 30
deadline.

Included among what IBRA categorized as uncooperative debtors
were companies belonging to the Tirtamas Group owned by Hashim
Djojohadikusumo, bankrupt Sempati Air of the Humpuss Group
controlled by former president Soeharto's son Hutomo "Tommy"
Mandala Putra with Rp 218 billion, Duta Anggada (Rp 802 billion)
and Jababeka International Bv owned by Sudwikatmono (Rp 379
billion).

Three companies owned by Hashim -- PT Tirtamas Majutama, PT
Tirtamas Comexindo and publicly listed cement manufacturer Semen
Cibinong -- owe Rp 1.6 trillion.

Tirtamas spokesman Jannus Hutapea argued that Hashim's
companies were categorized by IBRA as "companies which are ready
to sign the LoC but demanded changes in the provisions set by
IBRA.

"We only demanded that the LoC stipulate a clause stating debt
restructuring would be conducted in accordance with Indonesian
laws and regulations and that the LoC be tailored to the specific
condition of individual debtors," Hutapea told The Jakarta Post.

"The Tirtamas management is now engaged in intensive
negotiations with IBRA about the proposed revision of the LoC."

Publicly listed property company PT Putra Surya Perkasa, also
included among the uncooperative debtors, claimed it sent its
proposal on the LoC stipulations to IBRA on June 29.

"Our company is on the list because IBRA might not have
studied the documents we sent one day before the June 30
deadline," company spokesman Robert Puang Sunur told the Post.

"I think our company, and the remaining debtors on the list,
are cooperative enough, but the agency seems to have a different
opinion.

Irwan said: "Several of the uncooperative debtors did sign the
LoC but not precisely in line with the format and provisions set
by IBRA."

The debtors are among the 200 largest debtors of state banks
with total liabilities of over Rp 70 trillion. They have been put
as top priority in IBRA's debt recovery program.

In carrying out its tasks, IBRA is vested with extra judicial
powers, including the right to seize and auction assets of bad
debtors.

Irwan said debtors who signed the LoC but altered the
provisions set by IBRA would be given the opportunity to show
their commitment before the agency foreclosed on their assets.

"But debtors which refused to sign the LoC by the June 30
deadline will soon face legal action by IBRA."

He added that not all uncooperative debtors would
automatically be liquidated. Ones holding good business prospects
would be restructured to obtain the highest value.

IBRA announced early last month the 200 biggest debtors of
state banks. It invited them to sign the LoC by June 30 or face
litigation.

IBRA has Rp 600 trillion in assets under its management,
including about Rp 155 trillion in Bank Indonesia liquidity
assistance, Rp 220 trillion in nonperforming loans, Rp 96
trillion in debt notes and Rp 103 trillion in banking
investment. (jsk)

List of recalcitrant debtors (in billion Rp): Jababeka
International BV (379), PT Daya Besar Agung Corp. (201),
PT Dharmasakti Pancagraha (186), PT Duta Anggada* (802),
PT Ekadharma Garmentama (208), PT Estika Yasa Kelola (517),
PT Gemala Industries Ltd. (238), PT Inter Petrindo Inti Citra
(3,139), PT Lucky Star Navigation Corp. (198), PT Mas Murni
Indonesia* (321), PT Mitra Laras Serasi (720), PT Prabu Budi
Mulia (415), PT Primaswadana Perkasa Finance (273), PT Putra
Surya Multidana* (1,522), PT Putra Surya Perkasa* (1,368),
PT Samurindoswadaya Sejahtera (341), PT Semen Cibinong* (205),
PT Sempati Air (218), PT Sewu Agro Investama (329), PT Sinar
Slipi Sejahtera (288), PT Sipatex Putri Lestari (298), PT Staco
Arta Karya (206), PT Staco Graha (636), PT Tensindo Sejati (246),
PT Tirtamas Comexindo (344), PT Tirtamas Majutama (1,098).

* Denotes listed company.