The value of assets held by Batavia Air, the private airline that was declared bankrupt last month, falls far short of the total amount owed to creditors, according to the court overseeing the liquidation of the company.
Nawawi Pomolango, a judge with the Central Jakarta Commercial Court, said on Friday that the operator’s total assets as of Jan. 30, when it was declared bankrupt, amounted to Rp 886 billion ($91.7 million), whereas its debts came in at Rp 1.27 trillion.
The company’s biggest debt, totaling around Rp 500 billion, is owed to the International Lease Finance Corporation, a US-based aircraft leasing company.
Batavia also owes Rp 429 billion to Bank Muamalat, Rp 15 billion to Bank Capital and Rp 11 billion to Bank Harda Internasional for loans, and Rp 70 billion in unpaid taxes.
Nawawi suggested that in light of the discrepancy between assets and debts, and the number of creditors in the case, the creditors should form a committee to discuss the best way to get their money back.
“Forming a committee of creditors is allowed by law. So if there are similar debts [owed to separate creditors], then they can discuss them together,” he said. “If possible, similar debts can then be combined into a single debt.”
Turman Panggabean, one of the four curators assigned by the court to handle the liquidation of Batavia’s assets, said the figure given for the value of the assets was based on a report by the company’s financial director and could still change.
“Based on that, it’s only around Rp 800 billion, but we have to verify this. We can make a new statement about the assets once we’ve had conducted an appraisal,” he said.
“There’s still a lot of verification that needs to be done. For instance, the initial estimate for the unpaid taxes was Rp 2 billion, but based on the ledgers it’s actually about Rp 70 billion.”
Andra Reinhard Pasaribu, another curator, said the value of the amount owed to creditors was also liable to change following further verification.
“The figure for the debts owed is based on figures given by the creditors, but we don’t have our own figure yet,” he said. “And based on the results of an investigation, that figure isn’t considered valid yet.”
Batavia was declared bankrupt by the Central Jakarta Commercial Court on Jan. 30 and announced it would cease all operations as of Jan. 31.
The bankruptcy petition was filed by the ILFC over the $4.68 million debt that Batavia reportedly failed to pay by the Dec. 31, 2012, deadline for leasing a fleet of Airbus A330 jets.
Since then, Citilink, the low-cost airline of national flag carrier Garuda Indonesia, has offered to take over 14 of Batavia’s routes and Mandala Airlines and Express Air to take over six routes.