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.