LAWFUEL – Legal Newswire – MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced today the filing of a
ruling, by the United States District Court for the Southern
District of New York, in favor of the EXPORT-IMPORT BANK OF THE
UNITED STATES (“EX-IM BANK”) in a civil suit to recover more than
$104 million in defaulted loans from ASIA PULP & PAPER COMPANY,
LIMITED (“APP”) — a Singapore-based manufacturer of paper
products — and three of its principal Indonesian operating
companies, PT INDAH KIAT PULP & PAPER TBK (“INDAH KIAT”); PT
PABRIK KERTAS TJIWI KIMIA TBK (“TJIWI KIMIA”); and PT PINDO DELI
PULP & PAPER MILLS (“PINDO DELI”).
EX-IM BANK is an independent federal government agency
which helps create and sustain U.S. jobs by financing the sale of
U.S. exports — primarily to emerging markets throughout the
world — by providing loan guarantees, export credit insurance
and direct loans. EX-IM BANK’s lawsuit alleged that INDAH KIAT,
TJIWI KIMIA, and PINDO DELI defaulted on thirteen loan agreements
into which they had entered with EX-IM BANK, and that APP had
unconditionally guaranteed repayment of three of those loans.
In March 2001, APP announced that it would cease
repayment of its worldwide debts, which totaled approximately
$13.9 billion. After this announcement, EX-IM BANK participated
in extensive discussions with APP and its Indonesian operating
companies, as well as other creditors, in an attempt to reach an
acceptable consensual restructuring solution and avoid
Ultimately, EX-IM BANK opposed the final
restructuring plan that was negotiated among APP, its operating
companies, and certain of its other creditors.
In granting summary judgment to EX-IM BANK, the Court
rejected the arguments raised by APP and its Indonesian operating
companies that EX-IM BANK’s participation in negotiations to
attempt to restructure the debt prevented EX-IM BANK from
enforcing repayment of the debt.
Assistant United States Attorney SARAH E. LIGHT is in
charge of the case.