Timah hires lawyers to recoup unpaid loans to BPUI
Friday, May 18 2001 - 04:00 AM WIB
State tin mining company PT Tambang Timah has appointed three law firms to recoup its bad loans to PT Bahana Pembinaan Usaha Indonesia (BPUI), Bisnis Indonesia daily reported on Friday (May 18).
Timah president Erry Riyana Hardjapamekas said after the company's shareholders meeting in Jakarta on Thursday that the three contracted law firms included Prdjoto & Associates, Assegaf & Partners as well as Todung Mulya Lubis, Santosa and Mulyana.
In addition, Erry said that the company had sent a letter to the finance minister to facilitate negotiations between Timah and BPUI.
"But at the same time, we are also preparing legal measures to anticipate the possibility that the negotiations fail," Erry said.
Such legal measures, Erry said, would be pursued to clarify what were the rights and obligations of each party, in this case Timah and BPUI.
Erry noted that Timah management was irritated by the way BPUI was responding to the problem. BPUI, according to Erry, just inform Timah management about its inability to pay its debt to Timah, without involving any talks with Timah management.
Erry viewed that BPUI management had no good faith in resolving its obligation to Timah, currently staying at US$17 million and Rp 61 billion.
Timah started placing funds in BPUI in 1997, with a total funds of $23 million and Rp 55 billion. As of Jan. 1998, Timah loans at BPUI stood to $22 million and Rp 61 billion. And in March 1998, BPUI paid Timah $5 million, and therefore as of March Timah's loans to BPUI stood at $17 million and Rp 61 billion. However, in May 1998, BPUI declared default to Timah and not be able to pay its debt interests to Timah.
Timah has been cooperating with a number of banks to demand payment of its loans to BPUI, but to no avail. And now Timah decided to hire lawyers to recoup its money at BPUI. (*)