Bankruptcy & Insolvency

Our insolvency practice advises creditors, debtors, and other stakeholders through suspension-of-payment proceedings and bankruptcy proceedings under Indonesia's insolvency law, conducted before the Commercial Court under a procedural timetable considerably more compressed than ordinary civil litigation — a feature of the regime that rewards preparation and punishes delay in equal measure. We advise on the full sequence a PKPU matter follows: the petition and the court's provisional grant, the appointment and oversight of the administrator, the negotiation of a composition plan between debtor and creditors, and, where no viable composition emerges, the conversion of the proceeding into bankruptcy and the subsequent liquidation of the estate.

We represent both sides of this process. For creditors, we advise on filing and proving claims, participating in creditor meetings and votes, and protecting secured positions — including fiduciary and mortgage security — against the risk of subordination or challenge during the proceeding. For debtors, we advise on the preparation and negotiation of a composition plan credible enough to secure the statutory majority of creditor approval, which is frequently the difference between a business that survives its restructuring and one that does not. We also advise on asset disposition and recovery within an insolvent estate, on the legal opinions that creditor and debtor positions require at each stage, and on the preparation of the court applications and documentation the process demands at a pace that leaves little room for drafting errors to be corrected later.

Insolvency work sits at the intersection of law and commercial reality. The statute dictates the process and its deadlines, but the outcome — whether a business is restructured on workable terms or liquidated for the benefit of its creditors — is almost always decided at the negotiating table, under the shadow of the court's timetable rather than in the courtroom itself. We prepare for both the legal process and the commercial negotiation in equal measure, because a party that treats either as secondary to the other tends to fare poorly in proceedings where both run simultaneously and neither waits for the party that falls behind.