Minimizing losses and maximizing recoveries from bankruptcy is indeed possible.
Today’s business environment is volatile and no one can predict what is going to happen next. Especially during difficult times, some companies may find it challenging to recover credits or discharge debts – leading to the need of corporate recovery.
The current COVID-19 pandemic has slowed down the global and local economies. Various business sectors and industries have been profoundly impacted, leading to bankruptcy and/or insolvency for many businesses across Indonesia.
To support businesses and companies in Indonesia and help them survive during this unfortunate time, we provide corporate recovery and bankruptcy or insolvency services that can assist you in weathering the storm.
Procedures for Bankruptcy Filing and Debt Suspension (PKPU) Filing in Indonesia
Bankruptcy filing and debt suspension filing in Indonesia are rather complicated. It would be wise to consult with insolvency and bankruptcy professionals who can explain the procedure of corporate recovery in great detail and assist you every step of the way.
Filing bankruptcy can help business owners by discharging debts or making plans to repay debts. In short, the procedure for filing bankruptcy in Indonesia is as follows:
- File bankruptcy: it can be either self-filing or filing by creditors.
- Wait for approximately 30 days to see whether a bankruptcy filing is approved or rejected.
- If the bankruptcy filing is approved, arrange a meeting with creditors for a peace proposal.
- If approved, the next step is homologation or verification followed by the bankruptcy being terminated or lifted. If rejected, the next step is asset designation followed by asset distribution.
Note: if a bankruptcy filing is rejected, there will be cassation and judicial review before going through the bankruptcy filing process all over again.
In addition to filing bankruptcy, business owners can also file debt suspension. When debt suspension filing is approved, creditors agree to suspend the scheduled payments so that debtors can allocate their resources on coping with and surviving a difficult time.
The procedure for filing PKPU in Indonesia is as follows:
- File PKPU: it can be either self-filing or filing by the creditor.
- For self-filing: wait for a court decision within three days and go through the PKPU process (max. 270 days). If approved, an accord will be issued. If rejected, you will be declared bankrupt and arrange a meeting with creditors (see Procedure for Bankruptcy Filing – step 3).
- For filing by creditors: issue a summons letter to the debtor within seven days before the day of the trial, wait for a court decision within 20 days and go through the PKPU process (max. 270 days). If approved, an accord will be issued. If rejected, you will be declared bankrupt and arrange a meeting with creditors (see Procedure for Bankruptcy Filing – step 3).
What to Expect from Our Corporate Recovery & Bankruptcy or Insolvency Services in Indonesia
A team of bankruptcy experts at Cekindo can assist you in navigating matters related to bankruptcy and insolvency regardless of business sector and industry.
You can select from a suite of advice and recommendations that include, but are not limited to, the following:
- Investigation of company affairs, which include assets, liabilities, and claims of creditors and other stakeholders
- Liquidity review and analysis
- Bankruptcy filing and debt suspension filing
- Debt restructuring strategies
- Sourcing funds, lenders, and potential investors
- Mergers and acquisitions
- Company dissolution
Start Your Corporate Recovery by Consulting with Experts at Cekindo
Cekindo was established to accomplish its primary goals, which are to support business growth and save businesses. With 10+ years of experience in the Indonesian market, our team of dedicated professionals can provide expert guidance and assistance in numerous distressed situations. From investigations and litigation to debt or equity financing and business restructuring or turnaround, we would be happy to have a discussion with you.
Reach out to us now, by completing the form below, so that we can immediately assist you with our corporate recovery and bankruptcy or insolvency services in Indonesia.