'Surabaya Post' declared bankrupt

'Surabaya Post' declared bankrupt

Ainur R. Sophiaan, The Jakarta Post, Surabaya

The Surabaya Post evening newspaper, which ceased publication
on May 1 this year, was declared bankrupt, making its
reappearance virtually impossible in the near future, its senior
journalists said on Tuesday.

The bankruptcy decision was made at a shareholders' meeting
late on Monday attended by all three owners -- Didi Azis, Indra
Jaya Azis and Iwan Jaya Azis, who are all brothers.

"It was the only decision the shareholders could make. The
company has been forced to take this step because of the enormous
losses it has had to bear since the end of last year," Yunani
R.M., a senior journalist, quoted Iwan Jaya, an economic expert,
as saying.

He said the company also pledged to pay severance payment to
all its 245 employees after an appraisal of its assets is
conducted on Wednesday in Jakarta.

Yunani, a member of the team of 10 representing the workers,
said the three shareholders did not elaborate on the decision,
nor did they say whether the company will republish the paper in
the future.

"Actually, all the journalists and other employees of the
former newspaper are prepared to do whatever it takes to make it
reappear," he added.

Saiful Irwan, leader of the company's workers association,
said the decision to declare bankruptcy had never been discussed
with employees.

"We are confused as to why the shareholders made such a
decision. They had never informed us of this before. All of them
live in Jakarta," he said.

Saiful added the problem was that most of the assets, which
have been guaranteed to pay off the workers, did not belong to
the company.

The assets are still controlled under the name of the late
Toety Azis, who is the mother of the three shareholders, he
added.

Echoing Yunani's statement, Saiful said a group of journalists
and administrative staff members of the company have been
negotiating with one of the owners to seek the newspaper's
possible reopening.

The newspaper halted publication on May 1, 2002, due to
financial problems blamed on the company's mismanagement. The
company had been losing Rp 500 million a month when it called it
a day in May.

The Surabaya Post was established on April 1, 1953 by senior
journalist, the late R. Abdul Aziz. It was most popular in 1980-
1981 when it reached a circulation of more than 80,000 copies.

In its dying days, just 5,000 copies of the newspaper were
being printed.