Tuesday, August 22, 2006

The "Shadow" Directors of Great River resigned

Worsening situation and uncertainties over the future of PT Great River International Tbk, once the largest textile and apparel manufacturer in Indonesia, the "shadow" directors of the company had tendered their resignation to Capital Market Supervisory Body (Bapepam) as of September 1st.

The "shadow" directors (appointed as power of attorney facilitaed by Bapepam) wrote to Jakarta Stock Exchange (JSX) last week that they would surrender the daily operation of the troubled Great River to creditors (Bank Mandiri, Bank Mega, & Nikko Securities).
The "shadow" directors are Kristanto Setyadi, Doddy Soepardi, D Swantopo, Albert Mario Setyawan, and Hasannudin Rachman.
They argued in the letter that Great River, controlled by Sunjoto Tanudjaja family, would only survive with the fresh capital from new investor. Without significant working capital, Great River is facing mounts of overdue payments to workers, suppliers, royalties, and decreasing orders from export market.
Read related article on Sunjoto at The Fugitive: Sunjoto Tanudjaja.




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