VFF sues state company

VFF sues state company

JAKARTA (JP): Cayman Islands-based The Vietnam Frontier Fund
(VFF) has filed a bankruptcy claim against state-owned ship
builder PT Dok & Perkapalan Kodja Bahari for allegedly failing to
pay US$1 million in promissory notes, the plaintiff's lawyer
confirmed on Wednesday.

Lucas from Lucas and Partners law firm said the action was
taken because Kodja Bahari defaulted on due payment on Dec. 1,
1997.

"It would be proper for the company to file for bankruptcy now
to prevent the unserviced debts from growing larger without
limit," Lucas said.

Lucas said the shipbuilder failed to pay any money to his
client since the debt maturity in 1997. He added his client was
increasingly concerned the debt was a write-off.

"So, liquidating the company's assets through the bankruptcy
process could be a solution," he added.

The first hearing of the case is scheduled for June 9. (udi)