Sumalindo faces court over $1.2m debt

Sumalindo faces court over $1.2m debt

JAKARTA: PT Sumalindo Lestari Jaya, an Indonesian timber company, said PT Pamolite Adhesive Industry is taking legal action to recover US$1.2 million payable to the gluemaker.

Sumalindo representatives appeared in the Central Jakarta Commercial Court on Monday in relation to a petition by Pamolite, which is seeking to have Sumalindo declared bankrupt, the Jakarta-based plywood manufacturer said in a statement to the Jakarta Stock Exchange late on Monday.

The petition was filed because Sumalindo hasn't paid an outstanding $1.2 million debt to Pamolite, Sumalindo said in the statement. The debt is equivalent to about 1.44 percent of the company's total liabilities to third parties, including banks, as of Sept. 30, it said.

Sumalindo shares have been suspended from trading on the Jakarta Stock Exchange since Nov. 11, the company said in the statement. The shares, which were unchanged at Rp 700 on Nov. 10, have risen 69 percent this year. -- Bloomberg