HITS Peaceful Resolve Legal Dispute | HITS

HITS Peaceful Resolve Legal Dispute

published on : 2012, September 13

Jakarta,- PT Humpuss Intermoda Transportasi Tbk. (HITS) as a shareholders 100% of Humpuss Sea Transport Pte. Ltd. (HST) that was bankrupted by the Singaporean Court on January 20, 2012, in good faith will assist HST in settling all disputes focused on HST and its subsidiaries.

Theo Lekatompessy, President Director of HITS, said that all vessels which were chartered by HST and its subsidiaries was returned to its respected owners where the value of said vessels were proportional to the debt principal which was charged by the ship owners in 2009.

Theo Lekatompessy, HITS's President, said all the ship that was leased by HST and its subsidiaries companies was returned to their owners who were legal where the ship's value accordance with the main debt that charged by the owners of the ship during 2009.

HST and its subsidiaries has also made payments on its known arrears from chartering to the ship owners and have also agreed to pay the amount which was charged as decided in the London Maritime Arbitration (LMAA). Furthermore, we will also pay immaterial losses which has been proposed by the ship owners, said Theo.

Chronology of the ongoing legal dispute

- Since 1986, HIT and its subsidiaries' core business were in LNG tanker and petrochemical tanker.
- In 2007, HST and its subsidiaries HML and GML as HIT's subsidiaries based in Singapore and Panama conducted business development outside of it's core business, which was Bulk Carrier and Chemical Carrier transportation through the bareboat chartering with Parbulk (Norwegia) of 1 Panamax Unit with 70,002 DWT, Empire (Greece) for 7 chemical tankers which consists of four 17,500 DWT vessels and three 25,000 DWT vessels. The company also dealt with Hanjin (Korea) for the charter of 1 Panamax unit with the size of 73,000 DWT.
- In 2008, as we all know, the economic crisis that hit the world impacted the shipping industry in Indonesia where the charter rate of vessels in the market were lowered to 1/3 of the amount due to the owners.
- In 2009, because of the economic crisis, all of the vessels that were chartered with option to buy at the end of the charter period from Parbulk (Norwegia), Empire (Greece) and Hanjin (Korea) was returned to its owners before the end of the charter contract. Known arrears payments have been paid.
- In 2010, the ship owners were not satisfied with the return of their vessels and negotiations were dead locked. Empire and Parbulk has then insisted on the payment of principal debt and delinquent installments, as well as immaterial compensation in the LMAA and London Court. While Hanjin has yet to start the Arbitration. The mentioned immaterial compensation from third party ship owners is an estimated Rp 1 Trillion.
- On December 2, 2011, Linsen (one of the Empire group) proposed the bankruptcy request to the Singaporean Court where on January 20 2012, HST was stated bankrupt and Cosimo Borrelli and Jason Kardachi (from Borrelli Walsh) was appointed as liquidator.
- During its development, HST's Liquidator gave the opportunity to the ship owners and HIT to carry out peace negotiations. Talks with the ship owners and with the liquidator has taken place in London, Amsterdam, Singapore and Jakarta.< br>- On August 2012, liquidator HST gave their proposal for settlement of USD 72,000,000.

For further information, please contact:
Corporate Secretary Division
Phone: (021) 252 4114
Email : corpsec@hits.co.id