'Supreme Court states Aster Dharma bankrupt'

'Supreme Court states Aster Dharma bankrupt'

JAKARTA (JP): The Supreme Court has declared PT Aster Dharma
Industri bankrupt, overruling the decision on the listed company
made by the Jakarta Commercial Court in June, a source said.

The Supreme Court based its decision on Aster Dharma's failure
to exercise its guarantee to take over the matured debt of its
subsidiary, a court official who insisted on anonymity said on
Tuesday.

The court said the verdict was issued on Aug. 18.

The Overseas-Chinese Banking Corporation Ltd. (OCBC) and the
Industrial & Commercial Bank Ltd. (ICB), both based in Singapore,
filed for a bankruptcy ruling in the Jakarta Commercial Court in
May. They said the plastic packaging company did not exercise its
guarantee to assume the US$3.8 million matured debt of its
Singaporean-based subsidiary Dtron Singapore Pte. Ltd.

The Jakarta Commercial Court rejected the bankruptcy claim, on
the grounds that Dtron Singapore was still in liquidation after
the Singapore courts declared it bankrupt last year.

Dtron Singapore's lawyer Rafael Adrian of Taira Faisal &
Panggabean law firm declined to comment on the verdict, saying
that he was not officially notified by the Supreme Court.

"We will comment on this case after we receive the Supreme
Court's verdict document," he told The Jakarta Post on Wednesday.

Rahmat Bastian of Dermawan & Co. law firm, representing the
plaintiff, said he was pleased with the Supreme Court's decision
because it was in line with the nature of the "unconditional
basis" in the guarantee agreement between Aster Dharma and the
Singaporean creditors.

"When Aster Dharma's subsidiary Dtron could not pay its
matured debt, the guarantor -- losing all its privileges --
unconditionally becomes liable for the debt," he told the Post.

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

The matured debt consists of $1.98 million owed to OCBC and
$1.82 million to ICB.

The value of Dtrons's assets following the December
liquidation could not cover the amount of debts owed, according
to the court receiver's appraisal in the Singaporean court.

Dtron's major owner is Aster Dharma, a subsidiary of PT
Dharmala Inti Utama.

Separately, a foreign creditor has reportedly filed a
bankruptcy claim against the state-owned general insurance
company PT Asuransi Jasa Indonesia (Jasindo) for allegedly
failing to pay its $5 million matured debt. (udi)