JAKARTA (Yosefardi) – Property developer PT Bakrieland Development Tbk (ELTY) is escaped from petition of Postponement of Debt Settlement Obligation (PKPU) filed by Bank of New York Mellon as Commercial Court of Central Jakarta rejected the bank’s PKPU petition.
Panel of judges chaired by Dwi Sugiarto decided to receive absolute competency exception proposed by Bakrieland.
Panel of judges also revealed that the commercial court has no authority to handle the case, as based on trust deed, the dispute must be settled by courts of England or Wales.
Bank of New York Mellon, the PKPU petition, denied that the petition should be filed in the England and Wales jurisdiction, as plead by Bakrieland. The bank’s legal representatives believe that England and Wales’ jurisdiction are not absolute.
The bank also claimed that Bakrieland’s denial on the trust deed related to the debt shows the company’s bad faith. In the previous trial, Bakrieland insisted that trustee did not have any legal standing in the case.
The case started with Equity-linked obligation issued by BLD Investments Pte Ltd for US$155 million on Mar. 23, 2010. The bond, carries annual interest of 8.625%, will mature in March 23, 2015. (indrab@yosefardi.biz)