Polysindo creditor pushes case

17 January 2000 00:00  [Source: ACN]

Lawyers for Inter Pacific Bank have filed an appeal to the Indonesian Supreme Court against a decision by the Jakarta Commercial Court to reject its bankruptcy petition against Polysindo Eka Perkasa.

Polysindo, part of the Texmaco group, owes the bank US$1.8m in promissory notes.

The court turned down the case because only one creditor appeared to lodge the complaint. Under Indonesia's bankruptcy law, a plaintiff must prove that a company has at least two creditors for a bankruptcy suit.

The court has 30 days from 4 January 2000, when the appeal was filed, to make a decision. Should the Supreme Court reject the appeal, lawyers for Inter Pacific Bank are expected to take the case to the Higher Supreme Court, this time with the names of Polysindo's other creditors. A Texmaco official told ACN that negotiations are underway with all principal creditors of the group on its debt restructuring, and expects them to be completed soon. He declined to name the other creditors involved in the talks, but said that Inter Pacific Bank was not one of its principal creditors.

In 1998, Credit Suisse First Boston (CSFB) threatened to sue Polysindo for failure to repay US$235m in Polysindo bonds. CSFB withdrew the suit in April 1999. CSFB sources last week declined to comment.

Trading on Polysindo's shares resumed on 4 January at Rp525/share as ACN went to press, up Rp50/share from the day before, the Texmaco official said.

Polysindo's shares were suspended on 20 December because of Inter Pacific Bank's bankruptcy petition.

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