Bankruptcy proceedings have started against Barito Pacific, one of Indonesia’s biggest plywood makers.
The company, once worth US$1.25bn, is believed to owe about US$379m to foreign creditors. Bondholders started proceedings after Barito failed to make interest payments.
Barito sold 400bn rupiah bonds in 1997 shortly before a financial crisis in Asia sent the currency plunging. The crisis was triggered by a devaluation in the Thai baht.
