IFC Duped by Fictitious Creditors?
The International Finance Corporation, a subsidiary of the World Bank, is claiming that PT Panca Overseas Finance created fictitious creditors to escape a bankruptcy declaration and avoid full payment of its outstanding debts. Will the Jakarta Commercial Court heed IFC’s claims?
January 16, 2001
The creation of fictitious creditors has become a popular means of avoiding bankruptcy declarations. In September 2000, PT Davomas Abadi, a producer of chocolate foods, allegedly submitted a list of 60 fictitious creditors to the Central Jakarta District Court to escape a bankruptcy petition submitted by eight other creditors. Now, the Jakarta Commercial Court faces a similar scenario, this time involving the International Finance Corporation (
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