Bankruptcy, Insolvency & Restructuring
Bankruptcy, Insolvency & Restructuring
Corporate restructuring activities in Indonesia are primarily governed by company law, banking law, and industry-specific regulations. Nonetheless, the Bankruptcy Law is the primary legal framework for insolvency/bankruptcy-related restructuring, and the increasing number of PKPU/bankruptcy cases calls for regulatory reform of the Bankruptcy Law.
ADCO Law grasps the complexities of our client’s industries and brings a cross-disciplinary team to help. Our diverse team of lawyers represents secured and unsecured creditors, committees, directors, and other stakeholders in bankruptcy/insolvency proceedings and reorganizations. Side by side, we also work collaboratively with clients to tackle complex legal challenges and identify the best opportunities for business continuity.
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Practice Description
Legal Advisory
We assess legal issues and the position of our clients. Additionally, we also provide legal strategies including mapping our client’s strengths and weaknesses in bankruptcy, insolvency & restructuring-related matters.
Debt Restructuring
We manage various ways to resolve legal issues regarding debt restructuring. We also represent and/or accompany our clients, both debtors and creditors, in the negotiation and mediation process with opposing parties in order to obtain a reliable scheme of debt settlement.
Debt Settlement
We prepare and provide our clients with legal documents related to debt settlement in bankruptcy, insolvency & restructuring matters including settlement proposal, settlement term sheet, and settlement agreement.
Court Proceedings
We represent our clients, both debtors and creditors, in the process of bankruptcy and suspension of debt payment obligation (penundaan kewajiban pembayaran utang/PKPU) proceedings at the commercial court, including in other lawsuits related to the bankruptcy or PKPU (gugatan lain-lain atau renvoi prosedur). We also represent our clients in the cassation stage at the supreme court.
Bankruptcy/PKPU Stages
After a debtor is declared bankrupt or PKPU by the commercial court, we also represent our clients, both debtors and creditors, to submit or receive debt registrations, attend creditors’ meetings, prepare and review settlement proposals, vote on the settlement proposals offered by the debtor, and liaise with receivers or administrators to communicate the interest of our clients.
Annulment of Settlement Agreement
If a debtor does not carry out its obligation based on homologated settlement agreement, we also represent our clients, both debtors and creditors, in the annulment of settlement agreement proceedings at the commercial court and the supreme court.
Training and workshops
We regularly organize training sessions and workshops on bankruptcy, insolvency & restructuring for our clients. This initiative enhances their legal understanding and best practices.
Our Experience
- Represented clients in various commercial disputes such as Bank Guarantee disputes with a value of IDR 30.000.000.000 (thirty billion Rupiah), Bankruptcy cases with a disputed value of USD 1.000.000 (One million United States Dollar) and various other commercial disputes;
- Counsel for a sugar company in Lampung as Plaintiff in the trial of a lawsuit for the cancellation of a debt, credit and guarantee agreement and guarantee with a disputed value of USD 250,000,000.00 (two hundred and fifty million United States dollars at the Central Jakarta District Court (at the appeal level at the DKI Jakarta High Court and the cassation level at the Supreme Court of the Republic of Indonesia).
- Assisted a technology company in recovering payments from a counterpart, involving legal procedures to ensure the owed payments were successfully recovered.
- Assist and represent a large Asian mining equipment manufacture in bankruptcy/delay of payment proceeding.
- Assisted a foreign client with a Suspension of Debt Payment Obligation (PKPU) case;
- Represented an Indonesian company in meetings and processes related to the suspension of debt payments (PKPU), negotiating with creditors and managing the legal proceedings to achieve a favorable outcome for the client.
- Represented leading companies to file Petitions for Suspension of Debt Payment Obligations (PKPU) to the Commercial Court of Jakarta.
- Represented leading companies as Respondents towards Petitions for Suspension of Debt Payment Obligations (PKPU) filed by Creditors at the Commercial Court of Jakarta.
- Represented an Indonesian company in meetings and processes related to the suspension of debt payments (PKPU), negotiating with creditors and managing the legal proceedings to achieve a favorable outcome for the client.
- Handled over 6 complex suspensions of debt payments obligation (PKPU) and bankruptcy cases for diverse industries across multiple Indonesian commercial courts, and serving as Administrator Team and Receiver Team.
- Lead counsel representing a leading integrated supply chain solutions provider and largest private sector distributor of petroleum and basic chemicals, as the claimant in the suspension of debt payment obligation (Penundaan Kewajiban Pembayaran Utang, “PKPU”) case against its debtor’s guarantor, as the defendant with an outstanding debt of IDR 190 billion before the Commercial Court at the District Court of Semarang;
Credentials
Other Creditors Arising From The Cessie in PKPU & Bankruptcy
Postponement of debt payment obligation (Penundaan Kewajiban Pembayaran Utang, “PKPU”) is a legal remedy...
Legal Action Against Personal Guarantor based on the Indonesian Civil Code and the Bankruptcy and Suspension of Debt Payment Obligations Law
A. Personal Guarantor A personal guarantor is basically a guarantee for a debtor’s debt as stipulated...
Insight
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