Tri Polyta is an insolvent Indonesian chemicals manufacturer, which has acquired notoriety in Indonesian investment circles because of its default on a large 1996
bond issue
In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as i ...
and its success in persuading a court in Indonesia to protect it from the enforcement of its bond obligations.
Tri Polyta (formally ''PT Tri Polyta Indonesia Tbk'') brought a lawsuit in the district court of
Serang
Serang ( id, Kota Serang, , Sundanese: ) is a city and the capital of Banten province and was formerly also the administrative center of Serang Regency in Indonesia (the Regency's capital is now at Baros). The city is located towards the nor ...
, naming ninety-seven defendants, including AIM Capital Management, Houston, Texas;
Cargill Financial Services Corp., Minnetonka, Minn.; Invista Capital Management, Des Moines, Iowa;
BNP Paribas Asset Management, New York;
Oaktree Capital Management
Oaktree Capital Management is an American global asset management firm specializing in alternative investment strategies. As of March 31, 2022, the company managed $164 billion for its clientele.
The firm was co-founded in 1995 by a group that ...
, Los Angeles, Calif.;
Cerberus Capital Management
Cerberus Capital Management, L.P. is an American private equity firm,Leaders Magazine"Providing Economic Opportunity: An Interview with The Honorable Dan Quayle, Chairman, Cerberus Global Investments, LLC". specializing in distressed investing ...
, New York;
Euroclear
Euroclear is a Belgium-based financial services company that specializes in the settlement of securities transactions, as well as the safekeeping and asset servicing of these securities. It was founded in 1968 as part of J.P. Morgan & Co. to settl ...
, Brussels, Belgium and Millennium Partners, New York. It argued that it had been induced by the machinations of the defendants into entering into an
underwriting
Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liabili ...
agreement that was fraudulent under Indonesian law.
The court agreed in May 2004, freeing Tri Polyta of the obligation to repay US$185 million in principal, as well as close to US$119 million in interest. The creditors are appealing.
Chemical companies of Indonesia
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