Texmaco's unit sued for $13 million loans

Texmaco's unit sued for $13 million loans

Bloomberg, Jakarta

Calyon, a unit of Credit Agricole SA, and a Swedish state-owned
lender have sued a unit owned by the Texmaco Group to recover
US$13 million from the company.

Calyon and Sweden's Exportkreditnamnden filed the case against
PT Wismakarya Prasetya in the South Jakarta District court, said
Shiv Dave, commissioner of PT Emerging Indonesian Business, which
is advising the two companies.

Wismakarya generates electricity for Texmaco group companies,
including PT Polysindo Eka Perkasa, which was declared bankrupt
by Indonesia's Supreme Court in February.

Calyon and Exportkreditnamnden "tried to reach a settlement
through a consensual approach but they haven't been successful,"
said Dave.

The two European companies lent money to Wismakarya Prasetya
in 1997, which stopped paying interest on the debt in 1998,
Calyon and Exportkreditnamnden said in a statement issued by
Emerging Indonesian.

Wismakarya's parent Texmaco Group, which was Indonesia's
largest textile maker until the 1997 Asian financial crisis, was
declared in default last year after failing to keep to an
agreement on Rp 29 trillion ($3.4 billion) of rearranged debt.

Texmaco founder Marimutu Sinivasan couldn't be immediately
reached for comment.