JAKARTA (Yosefardi) – Andianto Setiabudi, president director of PT Cipaganti Citra Graha Tbk (CPGT), transportation services unit of Cipaganti Group, rejects the creditors’ demand for assets sale within next 6 months for debt payment.
Andianto, and other 2 executives of the company, were arrested by West Java regional police (Polda) for fraud against 8700 partners with total loss of Rp3.2 trillion.
Andianto Setiabudi, Julia Sri Redjeki (Chief of Commissioner), and Yulinda Tjendrawati (Commissioner) were arrested as they also act as management of cooperative of Cipaganti Karya Guna Persada.
Speaking at the Central Jakarta Commercial Court on Thursday (July 3), Andianto said he can not repay debts to creditors in cash at the moment as Cipaganti’s business is on declining due to lack supports from banks, leasing, and partners since March this year.
But Cipaganti, in a disclosure to the Indonesia Stock Exchange (IDX) Tuesday (June 24), said as its financial activity is separated from cooperative’s financial activity, then the case would not impact on its financial condition and projection.
The company will in near term hold shareholders meeting for appointing new management for the sake of the company’s going concern.
The Indonesia Stock Exchange (IDX) opts not to halt trading in CPGT shares though the company is now facing serious problem namely fraud allegation.
CPGT dropped 4.64% to Rp62 per share at 10.29 am Jakarta time. Cipaganti entered the stock market on June 27, 2013 through initial public offering (IPO) of shares at Rp190 per share. The stock rallied to as high as Rp455 in November 2013, but has since collapsed 85%.