Sofyan denies ownership of Gemala Industries
Sofyan denies ownership of Gemala Industries
JAKARTA (JP): Tycoon Sofyan Wanandi denied on Friday that he
was the owner of Gemala Industry Ltd, which was listed among
uncooperative debtors by the Indonesian Bank Restructuring Agency
(IBRA).
Sofyan said in a statement that the company -- which was
identified in the local media as PT Gemala Industries and PT
Gemala Industries Ltd -- was majority owned by his younger
brother Edward I. Wanandi, who is the company's chairman and
chief executive officer.
Sofyan also said that Gemala Industry Ltd and its affiliates
were not part of the Gemala Group, of which he is the chairman.
He appealed to the media and other parties not to spread
misleading information about him, threatening "legal measures"
against those who persisted.
IBRA named Gemala Industry Ltd on Wednesday among the 17
companies deemed bad debtors for failing to sign letters of
commitment for debt rescheduling by the Aug. 31 deadline. The
company was reported to have US$55.9 million.
IBRA identified the company as PT Gemala Industries Ltd; PT
denotes a limited liability company incorporated under Indonesian
law.
Sofyan said the use of PT was incorrect. He said that his
brother previously released a media statement declaring that his
company was incorporated in Ontario, Canada, not Indonesia.
"The identification of the company as PT Gemala Industries Ltd
or PT Gemala Industries is misleading and has caused the
perception that Gemala Industry Ltd is a company incorporated in
Indonesia and is subject to Indonesian laws," Sofyan said.
Edward said the inclusion of the company on the list of bad
debtors was legally flawed and damaged its reputation.
He contended that Gemala Industry, due to its incorporation in
Canada, was not subject to Indonesian law.
He acknowledged that Gemala Industries obtained loans from
branches of Bank Bumi Daya (BBD) and Bank Negara Indonesia (BNI)
in the Cayman Islands based on loan agreements made under the
laws of New York state in the U.S.
He said he informed IBRA by letter that his company had
restructured its loans on Aug. 18, 1998, under new credit
agreements, involving General Electric Capital Corporation as a
new lender and BBD and BNI as old lenders under the laws of the
U.S. state.
"Because Gemala Industries is legally bound now by the credit
agreements, it cannot sign the letter of commitment and
undertaking which was unilaterally set by IBRA without the prior
consent of the three creditors," Edward said.
"If IBRA takes over Gemala Industries' debts to BBD and BNI,
it shall be bound by the conditions of the credit agreements
under the laws of New York state." (jsk)