Singaporean banks sue Aster Dharma

JAKARTA (JP): Two Singapore banks have jointly filed a bankruptcy claim against PT Aster Dharma Industri for failing to exercise its guarantee in taking over the matured debt of its subsidiary operating in Singapore.

Rahmat Bastian of Dermawan & Co. law firm said on Friday the legal action was taken because the value of assets owned by Aster Dharma's subsidiary Dtron Singapore PTE Ltd., which was liquidated by the Singaporean Court last year, could not cover the total matured debt.

"The value of Dtrons's assets following the December liquidation could not cover the amount of debts owed, so we are going to its parent company which is based in Indonesia," Rahmat said.

Dtron's debts, under the debt agreement with its creditors, are guaranteed by its Jakarta-based parent company Aster Dharma, which is listed on the Jakarta Stock Exchange.

"Because the nature of the bankruptcy law is domicile-based, we are suing its parent company Aster Dharma here under Indonesia's 1998 Bankruptcy Law," he added.

Dtron Singapore PTE Ltd. was declared bankrupt on Dec. 11 and later liquidated under the order of the High Court of Singapore after failing to pay some US$3.8 million in principal loans which matured in early February 1998.

Rahmat said the $3.8 million debt consist of $1.98 million owed to the Overseas-Chinese Banking Corporation Ltd. (OCBC) and $1.82 million to the Industrial & Commercial Bank Ltd. (ICB).

He said the court's first hearings for the case was scheduled for June 10.

Dtron is majority-owned by Aster Dharmas, a subsidiary of PT Dharmala Inti Utama, which operates in the plastic packaging industry.

Aster Dharma also holds the manufacturing license of AIWA electronics appliances in Indonesia. (udi)