Mayora says law firm is unfair

JAKARTA (JP): Biscuit producer PT Mayora Indah claimed on Monday that its corporate legal consultant, Dermawan & Co, acted unfairly when the law firm represented a party the company is fighting against in court, the company's lawyer said.

"Dermawan & Co law firm is operating against the lawyer's code of ethics," Gusmarizal from Yan Juanda Saputra & Partners said in a statement made available to the Jakarta Post.

Dermawan & Co -- a legal consultant for Mayora since 1997 -- represented Bankers Trust International PLC. of the United Kingdom in court for a derivative transaction case against Mayora, Gusmarizal said.

Dermawan & Co has been Bankers Trust's corporate legal consultant since 1994, according to Gusmarizal.

Mayora and Bankers Trust signed a derivative contract in 1997, under which Mayora had to exchange US$50 million in rupiah at an agreed rate with Bankers Trust.

But by the time the company was due to pay, the rupiah's value plummeted against the dollar, leaving Mayora under pressure to pay.

Mayora instead filed suit last year against Bankers Trust for not giving adequate advice on the derivative transaction, which consequently caused considerable foreign exchange losses for Mayora.

Bankers Trust -- in facing the suit filed by Mayora at the South Jakarta State District Court -- hired Dermawan & Co (its existing corporate legal consultant) to act as the bank's litigation lawyer.

Officials from Dermawan & Co were not available for comment.

The case between Mayora and Bankers Trust is awaiting the court's decision.

Mayora, listed on the Jakarta Stock Exchange, is 32.93 percent owned by PT Unitra Branindo and the rest by the investing public. (udi)