Indon court dismisses bankruptcy suit against Polysindo

09 September 2003 03:49  [Source: ICIS news]

JAKARTA (CNI)--The Central Jakarta Commercial Court has dismissed a bankruptcy claim by Thailand's Bangkok Bank against Indonesian purified terephthalate acid (PTA) and textile producer PT Polysindo Eka Perkasa.

Bangkok Bank filed the lawsuit at the court on 12 August, basing the suit on legal claim amounting to $473 000 (Euro426 110) which it claimed was owed to it by Polysindo as of 28 February 2003.

It was not immediately clear whether Bangkok Bank would appeal against the court's decision.

Polysindo, which is under the supervision of the Indonesian Bank Restructuring Agency (Ibra), is seeking to raise an additional $25m in working capital, having raised an initial $25m from state-owned Bank BNI earlier this year. Ibra asked the company's management to raise the additional funds to ensure production would not be interrupted. 

Polysindo more than doubled its operating loss to Rp371.06bn in the first half of its financial year to 30 June 2003 from Rp156.51bn in H1 2002, due largely to continuing poor product margins.
 
A plan to restructure $450m worth of unsecured bonds held by Polysindo, which should have been implemented last year, still has not come into effect.
 
Polysindo began its debt-restructuring efforts in August 1998, when the company first went into debt default. Its total debt is $1.13bn.

The company operates a 340 000 PTA plant at Karawang in West Java. The plant has been operating at reduced capacity for most of the second quarter of this year due to raw material problems, but is currently reported to operating at close to full capacity.

 

By: Jack Lukup
+65 6780 4359

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