Economic uncertainity over the impact of the pandemic made business sector having financial difficulty, and it makes them having difficulty to pay its debt to creditors (Party who given it’s money or Goods to the Company).
One of the legal remedies to make sure the Companies pay its debt is applying for Postponement of Debt Settlement Obligation or PKPU.
Moreover, PKPU also a way out for every Companies who has difficulties to pay its debt with debt restructuration that will be supervised by supervisory judge and PKPU administrator designated by Commercial Court.
- Definition of PKPU
Based on Article 222 juncto Article 228 paragraph (5) Bankruptcy Law, the Company who unable or able to estimate paying its debts that are overdue and collectible, can request PKPU with the intention to submit peace plan including a part or full payment offer to creditor.
So we conclude that PKPU is a procedure that can be done to avoid Bankruptcy, it’s a relief that is given to the Companies so that they can delay the debt payments. In short time, the companies has chance to pay off their debts.
- The one who can submit for PKPU
PKPU can be submitted by parties who’s involved in debts, either by Companies or creditors.
- Requirements
- It should be submitted by Companies who have more than 1 (one) Creditors or by Creditor;
- Companies who can not or estimated can not continue paying their debts that are overdue and collectible, could ask for PKPU with the intention to submit peace plan including a part or full payment offer to creditor;
- Creditor who estimate some Companies can’t continue to pay their debts that are overdue and collectible, could ask PKPU for them. so that they could show the Creditor about their peace plan;
- Debts are overdue and collectible but Companies can’t pay;
- Companies have more than one Creditor. Which mean the application or PKPU can be submitted by Companies or Creditor if the debts aren’t only from a Creditor;
- Creditor is a concurrent creditors, that means the creditor giving debts with no guarantee. Well, that case makes the creditors unarmed if the Company can’t pay it’s debt.
- Difference between PKPU and Bankruptcy
As described above, PKPU is intended to propose a peace plan that includes an offer to pay part or all of the debt to Creditors, while bankruptcy is a general seizure of all the assets of the bankrupt Company whose the management and the settlement itself is carried out by the curator under the supervision of the Supervisory Judge.
There are also several other differences between PKPU and Bankruptcy, including:
- Legal Action
Regarding the decision on the application for Bankruptcy statement, cassasion, dan reconsideration (PK) can be submitted to the Supreme Court, while against the PKPU decision, any legal remedy cannot be filed.
- Company’s Asset Management
The authority to manage the assets of the Company in PKPU is given to the management, while the authority of managing the assets is given to the Curator.
- Company’s Authority
Since the date of the PKPU decision is pronounced, the Companies still can manage their assets as long as he gets approval from the management, where
- Duration of the Dispute Resolution
The duration for settlement of whereas in Bankruptcy, from the date the decision for the declaration of bankruptcy is pronounced, the Debtor loses his right to control and manage his assets which are included in the bankruptcy assets.
- Reasons why PKPU take precedence over Bankruptcy
Based on the regulations, if the Bankruptcy statement and the PKPU application are examined at the same time, the PKPU application must be judged first, where the PKPU application must be submitted at the first hearing the examination ofthe application for a bankruptcy statement.
In addition, the reason why PKPU takes precedent is because PKPU has the power to prevent Bankruptcy because it can be filed at any time before a Bankruptcy statement is decided by the Court (for example, before a Bankruptcy statement application has been filed, or after bankruptcy statement has been filed but there has been no Court Decision). PKPU has effectiveness in preventing Bankruptcy, especially depending on the existence of good faith and a sense of cooperation from both the Debtor and Creditors in the hope that the peace plan can be implemented properly until the obligations are fulfilled.
And there it is, a brief review of Postponement Of Debt Settlement Obligation (PKPU) During Pandemic. If there any question from abovementioned and want to know more information about PKPU, please kindly contact us through our webite.
SINAGA | TJAKRA | BAHAR LAW FIRM
