Shareholders sue Toba Pulp over $140m money transfer

Shareholders sue Toba Pulp over $140m money transfer

Apriadi Gunawan, The Jakarta Post, Jakarta

Three shareholders of publicly listed pulp producer PT Toba
Lestari are suing the company for Rp 25 billion (about US$2.8
million), on charges it transferred out US$140 million without
notifying them.

The three shareholders feel Toba Lestari deceived them, legal
representative Eri Hertiwan of Buying Nasution & Partners said on
Wednesday.

Eri is representing shareholders Djoko Santoso, H.N.D. Murdani
and Danny Suwaradhani, who together own a 0.78 percent stake in
Toba Lestari.

"The transfer of $140 million is certainly a significant
amount. But during the shareholders meeting the company did not
disclose this matter," Eri said, referring to the Toba Lestari
annual shareholders meeting in November 2001.

He said the capital market law required a publicly listed
company to inform shareholders and investors of significant
material transactions.

During the initial hearing of the suit on Wednesday, judge
M.S. Sitohang advised the two sides to try and reach an out of
court settlement.

Eri said the shareholders would welcome a settlement offer
from Toba Lestari, adding they "even plan to come to Jakarta and
talk about the kinds of settlements the company might offer".

Toba Lestari lawyer Anwar said the company was looking forward
to reaching an out of court settlement.

The next court hearing is scheduled for July 24.

The lawsuit is not the only problem facing Toba Lestari. Once
known as Inti Indorayon Utama, the company is surrounded by a
community with which it has been locked in an acrimonious dispute
over pollution charges.