Marco Polo shipyard makes Indonesian bankruptcy law filing

Aerial view of Marcopolomarine shipyard Aerial view of Marcopolomarine shipyard

MAY 20, 2017 — Singapore listed Marco Polo Marine Ltd reports that its Batam. Indonesia, shipyard subsidiary, PT Marcopolo Shipyard (PTMS), has filed for protection from creditors under Indonesian bankruptcy laws.

The shipyard has filed an application to place itself under a Penundaan Kewajiban Pembayaran Utang ("PKPU") suspension of debt payment plan in accordance with Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment.

On May 18, 2017, pursuant to the PKPU application, a temporary restraint of legal proceedings against PT Marcopolo Shipyard was put in place for 45 days. A judge has been appointed the Supervisory Judge, and a team of administrators have been designated, to assist PTMS in managing its assets.

Marco Polo Marine Ltd says "it understands that the PKPU process is a form of court-supervised debt restructuring plan. During this initial 45 day period, PTMS is required to submit a debt restructuring plan for its creditors to consider at a creditors' meeting and is subject to the consent of the requisite majority of creditors as prescribed by applicable law. It should be noted that should no debt restructuring plan is approved, a possible outcome is the placing of PTMS into bankruptcy."

PT Marcopolo Shipyard is one of the larger shipyards in Batam. The Shipyard has a total land area of approximately 35 hectares and a seafront of approximately 650 m. Situated at the South of Batam Island, Batu Aji, the shipyard is surrounded with calm water up to 6 m water depth at zero tide. It has three graving docks (up to 45 m wide x 190 m long) and 20 hectares of building berth.

The yard carries out shipbuilding, ship conversion, drydocking and repair works for vessels up to 40,000 DWT and also carries out offshore fabrication & installation work .

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