Striving for Legal Dispute | HITS

Striving for Legal Dispute

published on : 2012, June 29

Jakarta,- PT Humpuss Intermoda Transportasi Tbk. (HITS) will continue to the focus on their core business in the domestic market, while "striving for legal dispute settlement out of court or through business to business negotiations".

Theo Lekatompessy, HITS's President Director, said the legal dispute began in 2007, at that time HITS developed their business outside of their core business, which was the bulk carrier and chemical carrier. In 2008, while the economic crisis that hit the world had an impact on the shipping market in Indonesia.

Due the dead lock in negotiating tariff adaption and period, therefore to show a sign of good will, in 2009 all vessels chartered with the option to purchase from Hanjin (Korea), Parbulk (Norwegia), Empire (Greece) were returned to its owners without waiting for the contract to end." He said.

In 2010, the majority of the remaining unpaid hire was settled. However, the ship owners were not satisfied with only receiving the chartered vessels and unpaid hire settlement" he stated.

The ship owners sued compensation which was valued at twice the price of a new vessel in the LMAA (London Maritime Arbitration) and its establishment in London Court.

"The amount claimed was considered as unfair, in which the Company seek a relief with a more reasonable amount" said Theo. However, unfortunately, the ship owners remained firm and took legal action to freeze the Company's and it's subsidiaries' assets in the London and New York Court.

The company does not own any assets under the jurisdiction of both Court systems.

In 2011, the ship owners executed the LMAA decision towards the subsidiaries of Humpuss Sea Transport Pte. Ltd. that is engaged in a dispute with the foreign ship owners. In the end, in 2012, the ship owners especially Empire, liquidated HST which in reality has not been active since 2009.

The Liquidation of HST by Liquidator caused the independent auditors, in this case the Public Accountant Office of Purwantono, Suherman & Surja was not able to convince through the application of auditing procedures on the recovery of the company's investment in HST, the occurrence of liabilities or loss and the "disclaimer" opinion was given for the HITS and subsidiary companies' Consolidated Financial Report on 31 December 2011.

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