Creditor’s Voting Right under Government Regulation Number 10 of 2005 on the Calculation Number of Creditor’s Voting Right
The creditor’s meeting is a meeting that shall be held after the bankruptcy decision. In this regard, under Article 87 of Law No. 37 of 2004 on Bankruptcy and Suspension of Obligation for Payment of Debts (“Bankruptcy Law”) regulates that all decisions of the creditor’s meeting shall be made on the basis of affirmative vote of more than ½ (one half) of the amount of votes casted by the creditors and/or their proxy attending the meeting. As a follow-up to the provisions, it is necessary to have a regulation that further stipulates the calculation number of creditor’s voting right. Thus, on March 18, 2005 the Government Regulation No.10 of 2005 on the Calculation Number of Creditor’s Voting Right was enacted.
Voting Right of Creditors
In the creditor’s meeting, every creditor has a right to vote, which is the minimum of 1 (one) vote. The calculation number of creditor’s voting right under the Bankruptcy Law is based on the receivable amount of the creditors.
Bankruptcy proceedings settlement process in Indonesia is performed in the Commercial Court (“Court”). This is in accordance with Article 1 paragraph 7 of Law Number 37 of 2004 on Bankruptcy and Postponement of Debt Payment (“Indonesian Bankruptcy Law“), which states that the court is the Commercial Court in the general court.
The procedure of bankruptcy application filing may be seen in the Article on “Procedure of Bankruptcy Application in Commercial Court”.
In the event of the authorized Court decides the bankruptcy proceedings, there are some matters that should be known by the debtor and creditor, as follows: Read the rest of this entry »
One of the acknowledged parties in the Indonesia Bankruptcy proceeding is the Committee of Creditors (“Committee of Creditors”). Committee of Creditors is the party who represents the Creditors. Therefore, Committee of Creditors shall fight for their legal interest.
The Committee of Creditors
There are two types of Committee of Creditors presented in Indonesian Bankruptcy Law, such as:
1. Temporary Committee of Creditors
Under Article 79 of Law Number 37 of 2004 on Bankruptcy and Postponement of Debt Payment, it is stated that in terms of bankruptcy decision, the Court may form a temporary committee of creditors. These committee comprises of 3 (three) people which is chosen from the acknowledged creditors with the intention to give advice to the receiver.
The acknowledged creditors are the creditor who has already registered themselves to be verified.
The appointed creditors may delegate their works in the committee to other party. Read the rest of this entry »
The definition of Receiver in Law Number 37 of 2004 on Bankruptcy and Postponement of Payment (“Indonesian Bankruptcy Law”) is Heritage Hall (Balai Harta Peninggalan) or an individual appointed by Court to take care and clear bankrupt debtor’s assets under supervision of the Supervisory Judge (“Receiver”).
In a bankruptcy stipulation, Receiver and Supervisory Judge shall be appointed by Judge of the Court. In article 15 paragraph (3) of Indonesian Bankruptcy Law, it is mentioned that a Receiver must be independent, does not have conflict of interest to the debtor or creditor, and does not handle bankruptcy cases and the postponement of payment more than 3 (three) cases. The task of Receiver is to perform management and/or settlement of the bankruptcy assets. Receiver is authorized to carry out of the management and/or settlement for bankruptcy assets from the date of the bankruptcy verdict was pronounced although there is a cassation to the supreme court or judicial review against the decision. Read the rest of this entry »
Bankruptcy law is considered to be an essential practicing area in the legal field. Therefore, the US law firms are expanding their bankruptcy and restructuring practices. Filing bankruptcy is common in the US as the economy is undergoing depression. Millions of people in America are filing bankruptcy when they are unable to grapple with their financial issues. People file under personal bankruptcy that incorporates chapter 7 and chapter 13. If you are undergoing financial distress then filing for bankruptcy will help you give a fresh start. Before you file bankruptcy ensure that you have complete information on bankruptcy law.
What are the types of bankruptcy law?
The Bankruptcy Act of 1994 signed by former US President Mr. Bill Clinton, helped to implement the law. This law contains comprehensive provisions for business as well as personal bankruptcies. It provides easy solution to both consumers and businesses with faster hearings. It encourages them to file under chapter 13 bankruptcy as it can restructure the debt and help them start a fresh with ease. They can avoid severely affecting their credit report by filing under chapter 13 bankruptcy. The National Bankruptcy Commission is set up to monitor as well as probe into bankruptcy laws and practices, enabling a fair opportunity to litigate.
There are various subject of Applicant in Bankruptcy based on Law Number 37 of 2004 on Bankruptcy and Moratorium Obligation the “Indonesian Bankruptcy Lawof Debt Payment. Article 2 of Indonesian Bankruptcy Law states that the request of bankruptcy stipulation may be applied by the Public Prosecutors, Bank of Indonesia, Capital Market Supervisory Board, insurance Company and Minister of Finance.
Public Prosecutor is able to submit bankruptcy request for public interest. Based on Indonesia Bankruptcy Law’s explanation, the public interest in here is the interest of nation, country and civilians, for instance: Read the rest of this entry »