Istaka Karya Disrupted Bankruptcy, Assets Sold To Pay Debt

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA PT Perusahaan Pengelola Asset (PPA) ensures that the co-currency creditors will get part of the proceeds from the sale of collateral or assets owned by PT Istaka Karya (Persero).

This is a PPA meeting with all Istaka Karya creditors on August 4, 2023. Meanwhile, Istaka itself was cut off by the court in June 2022.

At the meeting, PPA together with separatist creditors supported the curator's request to share part of the proceeds from selling collateral to co-currency creditors, and submitted the distribution decision to the court.

The separatist creditors are creditors who hold property guarantee rights. Such as pawn rights, mortgages, and other collateral. Meanwhile, the cocurrency creditors are creditors who do not have the right to guarantee property.

Meanwhile, the shareholders who converted during the Suspension of Istaka Karya's Debt Payment Obligation (PKPU) in 2013 have returned to being creditors and registered and verified by the curator.

Investment Director 1 and PPA Restructuring Rizwan Rizal Abidin said PPA as the recipient of the mandate of the Special Power of Attorney for the Minister of SOEs Erick Thohr in September 2020 supported efforts to settle Istaka Karya's obligations offered by the curator.

"The PPA supports efforts to settle Istaka Karya's obligations offered by the curator at a creditor meeting on August 4, 2023 by prioritizing the principles of justice and humanity and in line with applicable laws and regulations," he said in an official statement, Wednesday, August 23.

Rizwan also hopes to get support from all parties so that the process of disbanding Istaka Karya can run as mandated in the Disbandment PP.

"So that it is the best solution to solve problems that have been adrift for a long time," he said.

For information, Istaka Karya experienced financial problems for a long time so that a restructuring was finally carried out through PKPU in 2013. In an effort to improve the performance of Istaka Karya after PKPU, Sigit Winarto was appointed as President Director in 2017 where the Company's debt position reached Rp881 billion (including debts converted during homologation).

Along the way, Sigit has made various efforts to solve problems at Istaka Karya, one of which is the completion of salaries and severance pay to 95 employees.

Sigit also tried to improve Istaka Karya's reputation and credibility by restoring the Company's focus according to its competence. At the beginning of his duty, Sigit managed to complete three projects that had previously experienced financial difficulties.

However, with the huge past debt burden added to the slump in economic conditions due to the pandemic, Istaka Karya was unable to fulfill its obligations which matured at the end of 2021.

Thus, in the end, the Panel of Judges at the Central Jakarta District Court decided to cancel the Peace Agreement (homologation) on July 12, 2022, which resulted in Istaka Karya's bankruptcy.