Archive for August, 2012

Bankruptcy Proceedings Process in Commercial Court

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 »

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Committee of Creditors in Bankruptcy

Background

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 »

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The Position of Receiver in Bankruptcy

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 »

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