Arpeni Pratama Indonesian bankruptcy case recognized by U.S. court

By Caroline Salls

Pittsburgh, Jan. 17 - PT Arpeni Pratama Ocean Line Tbk. said the U.S. Bankruptcy Court for the Southern District of New York has formally recognized its suspension of debt payment obligations proceedings before the Central Jakarta Commercial Court, according to a news release.

The recognition order was made as part of the company's Chapter 15 bankruptcy case, which was filed on Dec. 12.

The bankruptcy court entered a provisional order on Dec. 23 staying any action against Arpeni Pratama or its assets in the United States, the release said.

The company said the recognition order covers the Jakarta court's ratification of a settlement with the holders of Arpeni Pratama's 8¾% guaranteed senior secured notes due 2013, as well as an order extending the settlement terms to cover all of its restructured debts.

The recognition order also prohibits all parties from filing or continuing any actions against the company and its assets.

"This is the first instance in which a United States bankruptcy court has recognized equivalent proceedings in Indonesia," Michael Carl, foreign legal consultant at SSEK law firm, said in the release.

"Arpreni's success in these proceedings marks an important development for Indonesian law."

Arpeni Pratama is a Jakarta, Indonesia-based ocean shipping firm.

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