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)