Subject: Overview of Bankruptcy Law in Indonesia as it Applies to a Local PT From: Remko Weingarten Email: [email protected] To: [Client's Name] Dear [Client's Name], I hope this message finds you well. I am writing to provide you with a detailed overview of the bankruptcy law in Indonesia, particularly as it applies to a local Perseroan Terbatas (PT). Bankruptcy law in Indonesia is primarily governed by Law No. 37 of 2004 on Bankruptcy and Suspension of Payment (the "Bankruptcy Law"). This law is designed to provide a legal framework for the resolution of insolvency issues, and it applies to all legal entities established under Indonesian law, including PTs. Under the Bankruptcy Law, a debtor is considered bankrupt if they have at least two creditors and have failed to pay at least one debt that has become due and payable. A bankruptcy petition can be filed by either the debtor or the creditor(s). Once a bankruptcy petition is filed, the Commercial Court will conduct a hearing to determine whether the debtor is indeed bankrupt. If the court declares the debtor bankrupt, a curator (receiver) is appointed to manage the debtor's assets, which are then liquidated to pay off the debts. It's important to note that the Bankruptcy Law also provides a mechanism for Suspension of Debt Payment Obligations (PKPU). This is a court-supervised process where the debtor and the creditors try to reach an agreement on a debt settlement plan, which can prevent the debtor from going bankrupt. For a PT, the implications of bankruptcy can be significant. The directors of the PT may be held personally liable if they are found to have committed fraudulent acts or gross negligence leading to the bankruptcy. Furthermore, the bankruptcy of a PT leads to the dissolution of the company, and its assets are liquidated to pay off the creditors. Please note that this is a general overview and the actual process and implications can vary depending on the specific circumstances. I would recommend seeking legal advice to understand the potential implications for your specific situation. I hope this information is helpful. If you have any further questions or need more detailed advice, please do not hesitate to contact me. Best regards, Remko Weingarten [email protected] remko.online aided in writing this text.

BASE INFO Type of document : Memo filename : draft In what language : English MEMO Memo to : client Memo from : Remko Weingarten Title : bankruptcy law in indonesia Memo description : Give a description of bankrupcy law in indonesia as it applies to a local PT Detail level : very detailed