Prudential may resume operations
Prudential may resume operations
Abdul Khalik, The Jakarta Post, Jakarta
The judge appointed by the commercial court to supervise the PT
Prudential Life Assurance bankruptcy case decided on Friday to
let the company resume operations after it was closed down on
Monday by its controversial court-appointed receiver.
The lawyer for Prudential, Ricardo Simanjuntak, said that the
decision was made to maintain the value of the company's assets
while at the same time protecting the interest of policyholders
and employees. The decision by the commercial court is currently
on appeal to the Supreme Court.
"Today, we hope the company can serve its policyholders, who
need health services, and its employees, who must get their
salaries on time," said Ricardo.
He told The Jakarta Post that the judge's decision showed that
the receiver, a lawyer appointed by the court to safeguard the
assets of the company, made a mistake by rushing to close down
Prudential without proper understanding of the company.
According to Law No. 4/1998 on bankruptcy, the bankrupt
company loses its rights to manage its assets and a receiver is
assigned with authority to take care of all of its assets, even
though an appeal may have been lodged with a higher court.
However, the same law stipulates that the receiver has to get
a permit from the supervising judge to be able to close down the
company's operation.
Ricardo reiterated his demand that the receiver, Yuhelson, be
removed from his position and replaced by another more competent
lawyer.
Yuhelson told the Post that he had not been informed about the
decision to let Prudential resume operations. He said that he
would not be held responsible if the value of the assets
decreased because of continuing operations under a bankrupt
status.
"If they want to resume operations, then they should consult
with me. As a receiver, I am the one that has the authority to
manage the assets because the company has been declared bankrupt.
If the board of directors initiates company activities, we will
not be responsible," said Yuhelson.
He complained that he was still having difficulties meeting
with the directors to arrange a transfer of assets.
"This is an insult to the law. Actually, we intended to report
them to the police yesterday. But now, we must prepare more
evidence and a better strategy before reporting them," said
Yuhelson.
On the progress of the case, Ricardo said that he had
submitted all the documents needed for an appeal, but the process
might take several weeks before the Supreme Court's decision was
handed down.
"We insisted on resuming operations because it will take a
week before the appeal can be processed by the Supreme Court and
30 days before they issue a ruling. More losses will be incurred
if we stop operations that long," he said.
The commercial court declared Prudential bankrupt last Friday
after a former agent/consultant, Lee Boon Siong, filed a suit on
April 7, accusing the company of failure to pay him bonuses, and
demanding compensation of about Rp 366 billion (US$44 million).
The court decided on April 23 that Prudential should pay $400,000
and declared it bankrupt.