IGNOS Law Alliance Secures Victory for Client in Renvoi Procedure Case, Challenging Position and Receivables from Other Creditors

Medan, 21 December 2023 - In a notable legal triumph, IGNOS Law Alliance successfully represented the client as one of the creditors in a renvoi procedure case, in contesting the position and receivables from other creditors in the bankruptcy proceedings of a palm oil manufacturing company in the Commercial Court at the District Court of Medan.

Our client’s primary claim is regarding the validity of receivables and additional receivables held by unsecured creditors, as well as the status of secured creditor acknowledged by the bankruptcy receiver under the provisional list of receivables in bankruptcy. Consequently, the unsecured creditors’ receivables must be erased from the provisional list, and the status of secured creditors must be altered to become unsecured creditors.

The judges admitted our claim by considering that the receivables and additional receivables by unsecured creditors, as well as the status of secured creditor, are not valid based on evidence and related laws. As a result, the bankruptcy receiver has been instructed to take two actions: first, to remove the receivables and additional receivables made by unsecured creditors, and second, to reclassify the status of the secured creditor to become an unsecured creditor.

Responding to the decision, our Handy Samot Sihotang says, “This decision shows how the bankruptcy process prioritizes the interests of all creditors, not just one. Each creditor has the right to examine and scrutinize the receivables of other creditors to ensure fairness and equity. These principles align with the principles of balance and justice outlined in the Bankruptcy and PKPU Law. I would like also to express my appreciation to the team involved in this case.”