LG Electronic sues local partner over unpaid debt

JAKARTA (JP): South Korea's LG Electronic Inc. has filed a bankruptcy claim against its Indonesian partner, LG Bangunindo Electronic, in the Jakarta Commercial Court.

According to court data, the plaintiff is seeking the repayment of US$1.47 million owed by LG Bangunindo, which produces water pumps.

A court official said on Friday the request was filed on Sept. 22, with the first hearing scheduled for Sept. 30.

"Bahar and Partners law firm will represent the plaintiffs in the bankruptcy case," she said.

It is the sixth bankruptcy case brought before the Jakarta Commercial Court, the only court in the country handling bankruptcies, since it opened earlier this month.

A hearing of American Express Bank against defendant PT Ometraco Corporation was adjourned on Friday after the debtor's lawyers, Tony Budidjaja and Rahmat Bastian of Dermawan & Co, raised an objection to the plaintiff's charges.

"My client cannot accept the charges and therefore requests the panel of judges adjourn the hearing," Rahmat told reporters after Friday's second hearing.

Presiding judge R. Joediono agreed to adjourn the hearing.

"Give us several days to study the request and we will have the next hearing on Tuesday," he said.

The plaintiff's lawyer, Kitty Sugondo Kramadibrata of Kramadibrata Karim Sani Manihuruk law firm, had asked the presiding judge to reject the request.

"The judge should not have approved Ometraco's request to adjourn the hearing." She told reporters that defense lawyers were not allowed to make such requests in the commercial court.

A court official, Adhi Wahyono, told reporters that Ometraco Corporation was working on a plan to file for a suspension of payment order next week.

"Ometraco might officially propose the suspension of payment to the commercial court in the next hearing on Tuesday," he said.

The order allows the debtor to negotiate payment of the debt with creditors, with bankruptcy proceedings to start immediately if no agreement is reached.

Thirteen creditors, led by the Singapore branch of American Express Bank Ltd., filed a bankruptcy case against the publicly listed firm on Sept. 7 after the latter failed to repay the US$60 million loan which matured on July 7. (aly)