Prudential resumes operations
Prudential resumes operations
Zakki Hakim, Jakarta
PT Prudential Life Assurance, the offices of which were closed
down after it was declared bankrupt last month, resumed
operations on Tuesday.
The reopening followed a Friday decision by the judge
supervising the Prudential bankruptcy case to allow the company
to resume services.
Prudential spokesman Edwin Pieroelie said in a release that
the company's marketing and branch offices and customer services
had resumed operation, while the head office was expected to
reopen within the week.
"The management now has two priorities: to replace the current
controversial (court-appointed) receiver and to lodge an appeal
with the Supreme Court (over the bankruptcy ruling)," Edwin said.
Prudential has accused receiver Yuhelson of not being neutral
in the bankruptcy case because he is a former partner of the
lawyer who filed the bankruptcy suit against Prudential.
Prudential lawyer Ricardo Simanjuntak told The Jakarta Post
that Prudential was looking forward to seeing the commercial
court, in a hearing on Wednesday, remove Yuhelson from his
position and replace him with a more competent lawyer.
According to Law No. 4/1998 on bankruptcy, a company declared
bankrupt loses its rights to manage its assets and a receiver is
appointed with the authority to take care of all of its assets,
even though an appeal may have been lodged with a higher court.
Separately, the Indonesian Insurance Council (DAI) and
Indonesian Life Insurance Association (AAJI) on Tuesday urged the
government to amend the Bankruptcy Law, saying that the Ministry
of Finance should have the final say in declaring an insurance
firm bankrupt.
"It is the ministry that has the full knowledge of the
solvability of an insurance company," said DAI chairman Hotbonar
Sinaga.
Top economics ministers lamented the commercial court's
decision to declare Prudential Life Assurance (a unit of UK-based
Prudential Plc.) bankrupt as it is a solvent company with a risk-
based capital of 255 percent, well above the minimum requirement
of 100 percent.
Meanwhile, the Prudential management met with Minister of
Manpower and Transmigration Jacob Nuwa Wea on Tuesday to seek
support for its case.
Jacob told reporters after a closed-door meeting that he would
talk to President Megawati Soekarnoputri and send a letter to the
Ministry of Finance in a bid to find a way to save the company
from being declared bankrupt.
"We surely want to avoid some 8,000 agents and 300 employees
losing their jobs due to the bankruptcy ruling," he said.
The commercial court declared Prudential bankrupt on April 23
after a former agent/consultant, Lee Boon Siong, filed a suit on
April 7, accusing the company of failing to pay him bonuses.