Indra to renegotiate debt

JAKARTA (JP): The Jakarta Commercial Court approved on Thursday property developer PT Indra Maju Lestari's request to temporarily suspend due payments to construction firm PT Lukindo Technics.

PT Lukindo filed a bankruptcy suit at the commercial court on Sept. 28 after the property developer failed to pay a Rp 8.12 billion and US$444,410 construction fee due on Aug. 25 last year.

The plaintiff's lawyer, Gunawan Tjahjadi, said on Thursday his client would work with Indra Maju Lestari during the suspension of payment period to renegotiate its debt.

"It's OK, my client and PT Indra will work out a debt renegotiation," he said.

Lukindo is one of the construction firms which built an apartment block owned by PT Indra Maju Lestari on Jl. Kartini, Central Jakarta.

Indonesia's new bankruptcy law allows troubled firms to file a temporary suspension of payments request to the court to allow debtors and creditors time to work out a debt reorganization plan. The debtor is then given up to 270 days to negotiate a reorganization plan.

Failure to bring about an agreement results in the debtor's bankruptcy. (aly)