Sumitomo sues cable producer

JAKARTA (JP): PT Bank Sumitomo Niaga filed a bankruptcy claim against PT Supreme Cable Manufacturing Corporation for failing to pay its debt of US$3 million in promissory notes, the bank's lawyer said on Wednesday.

Cemby Hutapea of Kemalsjah, Cemby and Avriline law firm said the action was taken because the cable manufacturer could not settle debts which matured on Jan. 9.

Sumitomo said the company also was indebted to another joint venture bank, Daiwa Perdania Bank.

The 1998 Bankruptcy Law stipulates that a bankruptcy claim can be filed against a debtor if it has at least two creditors and one matured debt. (udi)