Mahadjaja Gemilang bankrupt

Mahadjaja Gemilang bankrupt

JAKARTA (AFX-ASIA): Jakarta Commercial Court has declared PT Mahadjaja Gemilang bankrupt after it failed to repay matured debts worth Rp 19 billion to the Indonesian Bank Restructuring Agency (IBRA), presiding judge Sjamsudin Mangan Sinaga said.

The bankruptcy petition was filed by IBRA.

Sinaga said Mahadjaja, which was involved in zinc manufacturing, has admitted that it has matured debts worth Rp 19 billion owed to IBRA including Rp 100 billion to other creditors.

The company has acknowledged that the company has little hope of surviving and there has been miscommunication between Rudy Hartono, the company's president and its overseas partner.

"(Given) such conditions, we (the commercial court) have decided to declare Mahadjaja Gemilang bankrupt," Sinaga said.