LG Electronic sues local partner over unpaid debt
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)