Ometraco in process of liquidation, lawyer says

JAKARTA (JP): PT Ometraco Corporation told the Jakarta Commercial Court on Thursday to turn down a bankruptcy petition filed by the Indonesian Bank Restructuring Agency (IBRA) as the company was already in the process of liquidation.

"Ometraco cannot be declared bankrupt again here," said company lawyer Leonard Simorangkir during a court hearing.

He said the company had declared itself bankrupt and registered the self-liquidation notice at the South Jakarta District Court on April 5.

The lawyer representing IBRA, Benny K. Harman, said the self- liquidation notice at the other court did not automatically abolish the rights of the creditors to file at the Commercial Court.

"Ometraco's legal status as a company has not been written off, so it can still be taken to the bankruptcy court," he said.

The 1998 Bankruptcy Law stipulates that parties that can file for bankruptcy are individuals and companies which have legal names.

Benny said the move by Ometraco to liquidate itself was done to anticipate IBRA's efforts in suing the company at the Jakarta Commercial Court.

"The company's move to liquidate itself under the South Jakarta Court was based on bad faith," said Benny.

He said the liquidation process under the South Jakarta Court was supervised by the concerned company's shareholders, while under the Commercial Court it would be under the creditors of the suing company.

"For the creditors' sake, the liquidation process under the Commercial Court would indeed be more preferable than at the South Jakarta Court," he said.

Ometraco owes IBRA $53.18 million. It operated its business on banks, property and telecommunications. The next hearing for Ometraco will continue on Monday.

Meanwhile at a separate hearing at the Jakarta Commercial Court on Thursday, crude palm oil producer PT Sumi Asih denied its debts to IBRA stood at $6.73 million, saying that the true amount should be $1.4 million.

Sumi Asih and Ometraco are two of three companies that IBRA took to Jakarta Commercial Court in late March after they failed to settle their matured debts.

The other is A Latief Corp., which owes IBRA $16.93 million. (udi)