Creditors Where Credit is Due?
Two creditors of Davomas, IBRA and the Arab Banking Corporation, have protested the legitimacy of 60 creditors named by the manufacturer, claiming they were fabricated to avoid bankruptcy.
September 18, 2000
How can debtors avoid bankruptcy? Just ask PT Davomas Abadi, large-scale producer of chocolate biscuits based in Surabaya. In order to avoid a possible declaration of bankruptcy issued by the Central Jakarta Commercial Court, last Monday Davomas allegedly engineered the names of 60 creditors with claims amounting to US$20.6 million.
The suspect creditors make up more than half of the company’s total creditors and therefore constitute the
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