Total Indonesia in bankruptcy battle

A bankruptcy petition filed against the local unit of French energy giant Total in Indonesia has been referred to a district court as a civil case.

    Total in turn filed arbitration proceedings against Sanggar

    Judges at the Central Jakarta Commercial Court ruled that the case against Total EP Indonesie by two contractors - Sanggar Kaltim Jaya and Istana Karang Laut - should be heard in a district court as a civil case.

     

    Sanggar Kaltim and Istana Karang claimed that the French company had failed to pay the two contractors $7.17 million for work they did at its Tunu gas field in East Kalimantan province on Borneo island.

     

    The claim was based on an audit of the project by the state Financial and Development Supervising Agency.

     
    Defamation

    Total EP in turn filed arbitration proceedings against Sanggar Kaltim on 25 February to seek compensation of $12 million for defamation.

     

    Total spokesperson Ananda Idris said the company was considering whether to pursue proceedings after the court ruling.

     

    Last year, the same commercial court declared an insurance unit of British financial services giant Prudential bankrupt, citing its failure to settle a contract with a consultant.

     

    The Supreme Court later overturned the ruling, but the original verdict had further damaged the reputation of Indonesia's erratic courts, which are seen as a major deterrent to badly needed foreign investment.

     

    In 2002, the Supreme Court also overturned a similar bankruptcy ruling against the fully solvent local subsidiary of Canadian insurance giant Manulife Financial Corp.

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.