TPI CONFIDENT TO WIN APPEALS IN SUPREME COURT
2009 - Jakarta, 21 Oct 2009
INVESTOR RELEASE
The bankruptcy declaration against TPI that has been rendered by Central Jakarta Commercial Court on October 14, 2009 is not final and binding as the declaration is now subject to the petition to the Supreme Court. TPI has submitted its cassation memory and is strongly confident that TPI will win the case in Supreme Court as the Commercial Court decision was contrary to the Bankruptcy Law and contrary to all the facts that presented to the court. We have more significant evidence after the Commercial Court’s verdict which will be presented in Supreme Court, in particular that these whole financial engineering schemes claimed against TPI is based on fraudulent acts. More importantly, we have filed police report for these potential criminal acts.
The court’s verdict on October 14, 2009 was based on misleading underlying assumption due to erroneous allegation presented in the court as follows:
- On contrary to the Court’s verdict which claimed that TPI had recorded Crown Capital Global Ltd’s (“CCGL”) Sub Bonds in its financial statements as of December 2005, TPI did not have any record on CCGL’s Sub Bonds in its 2005 financial statements.
- The bankruptcy declaration is invalid as it does not meet Bankruptcy Law’s criteria of at least a minimum of 2 outstanding creditors, since Asian Ventures Finance Ltd (“AVFL”) had sold the loan in October 2003, long before MNC became a controlling shareholder in 2006, so AVFL does not have any legal claim to the loan. The loan had never existed since 2003.
In 1996, TPI, under the management and controlled by the previous owner, issued USD 53 million Sub Bonds. The funds had been transferred into TPI’s account on December 26, 1996 but based on payment instruction dated on December 23, 1996, the same amount fund was transferred back on the next day, December 27, 1996. This transaction can be seen in BNI’s bank statement (In-Out transaction).
On December 27, 2004 CCGL had obtained the Sub Bonds from Filago Ltd through promissory notes, which previously Filago Ltd had acquired the Sub Bonds from Ben Mall Ltd, a company owned by the previous owner. All Sub Bonds transfers has never been informed to TPI, and it has never been recorded in TPI’s book since 2003.
In 2003, AVFL had sold TPI’s loan to PT Khatulistiwa Citra Prima (related to the previous owner) for USD 1 (One US Dollar).
Since TPI was acquired by MNC in 2006, TPI has been the subject of various audits and due diligence reviews. None of those audits or due diligence reviews revealed the existence of any debt allegedly due by TPI to either CCGL or AVFL.
Currently, TPI still runs normally and operates the business as usual. TPI contributes to 14% of total MNC’s consolidated Revenue; hence MNC will not be significantly affected by TPI’s case. TPI is now managing the issues through the Supreme Court and looks forward to an early resolution.
|
Back to press releases
title
Press Releases
