JSX suspends three Texmaco subsidiaries

JAKARTA (JP): The Jakarta Stock Exchange (JSX) temporally suspended on Monday the trading of PT Polysindo Eka Perkasa, PT Texmaco Perkasa Engineering and Texmaco Jaya, three of four publicly listed subsidiaries of the giant Texmaco Group.

The suspension followed the three companies' failure to submit their first quarterly monthly financial reports to the exchange on schedule, a JSX media statement said.

The JSX said it had suspended the trading of the three companies starting from the first trading session on Monday. Trading would remain suspended until further notice, it said.

"If within 15 days since their suspension, the companies cannot meet their obligation, The Jakarta Stock Exchange will consider delisting them from the market," the statement said.

Engineering company Texmaco Perkasa and textile companies Polysindo and Texmaco Jaya are three of the four publicly listed companies under the Texmaco Group.

Along with Texmaco's automotive manufacturer, PT Wahana Jaya Perkasa, the four subsidiaries have unpaid debts amounting to US$2.291 billion. About $868 million of the total is owed to the Indonesian Bank Restructuring Agency (IBRA) while the rest is in the form of bank loans and local and foreign currency denominated bonds from other creditors.

Texmaco owner Sinivasan Marimutu said that the four companies were currently undergoing a debt restructuring process, which he expected to be completed by September.

The JSX further said it had delayed, for an indefinite period, plans to delist PT Daya Guna Samudra, PT Bintuni Minaraya, PT Super Mitory Utama and PT Dharmala Sakti Sejahtera, which are now under the trade suspension.

It said that trade suspension imposed on the four companies would not be lifted until further notice.

The JSX said that the delay was made in response to a letter from the Capital Market Supervisory Agency (Bapepam), which required that the JSX maintain the suspension of the four companies.

In its letter to the JSX, Bapepam said it was conducting an investigation on the four companies due to suspicion that they had violated the principles of transparency in the stock market.

"You are requested to take the steps deemed as necessary in order to support our current investigation," according to the letter, which was signed by Bapepam chairman Herwidayatmo.

The JSX said earlier that it would lift the trade suspension imposed on the four companies 20 days before it would formally delist them from the market.

During the 20 days of trading, the investing public would be given a chance to withdraw their investments from these companies before the delisting measures were taken.

The JSX initially intended to delist the four companies last week but delayed the plan to provide adequate information to investors on its plans to delist them. (bkm)