JAKARTA – PT MNC Asia Holding Tbk (BHIT), part of the MNC Group controlled by Hary Tanoesoedibjo, said it is preparing to file an appeal against a court ruling ordering it to pay material damages to PT Citra Marga Nusaphala Persada Tbk (CMNP).

“The decision has not yet obtained permanent legal force. The company will file an appeal,” BHIT’s board of directors said in a statement to the Indonesia Stock Exchange on Friday (24/4).

Previously, IDNFinancials.com reported that the Central Jakarta District Court had ruled that Hary Tanoesoedibjo and BHIT must jointly pay USD 28 million plus 6% annual interest since 2002 as material damages to CMNP, a company owned by Jusuf Hamka.

The case stems from a 1999 transaction in which a USD 28 million Negotiable Certificate of Deposit (NCD) issued by PT Bank Unibank Tbk was exchanged for a Medium Term Note (MTN) worth IDR 163.5 billion and Phase II bonds worth IDR 189 billion issued by CMNP.

However, the NCD could not be redeemed on 22 August 2002 after Unibank was declared a frozen-operation bank (BBKU) in October 2001.

CMNP argued that the defendants—Hary Tanoesoedibjo and BHIT—were aware from the outset that the NCD was problematic, resulting in significant losses for the company.

BHIT, however, maintained that it acted solely as a broker or arranger in the transaction.

“The company also did not receive any payment funds from CMNP for the NCD purchase, as the funds were transferred by CMNP to Unibank as the issuer,” management said.

The company therefore plans to pursue an appeal and declined to specify the total financial obligations arising from the ruling.

“The total obligation may change depending on further legal remedies pursued by the company,” management added.

According to the court ruling, in addition to the USD 28 million plus 6% interest since 2002, Hary Tanoesoedibjo and BHIT are also required to pay IDR 50 billion in immaterial damages and IDR 5.02 million in court costs. (ZH)