New Moves to Escape Bankruptcy

The Jakarta Commercial Court validates a settlement proposal between PT Panca Overseas Finance and its creditors, effectively releasing the firm from bankruptcy. But the court ignored evidence and alleged that some of PT Panca's creditors were fictitious.

February 6, 2001

Should Law No.4/1988 on bankruptcy be abolished? Although enacted under guidelines set by the International Monetary Fund (IMF), the Indonesian Bankruptcy Law seems unable to protect foreign creditors from local debtors' tactics to avoid paying their debts.

Last Tuesday, the council of judges from the Jakarta Commercial Court, chaired by Syamsuddin Manan Siaga, validated a settlement proposal between PT Panca Overseas Finance and its majority cre

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