NU Online News Service, June 13, 4:19 p.m. – Manulife Financial Corp., Toronto, is lashing out at an Indonesian judge who declared its Manulife Indonesia subsidiary bankrupt.
The subsidiary is caught up in a bitter, complicated dispute with Manulife’s former joint venture partner, PT Dharmala Sakti Sejahtera, Jakarta, and other parties in Jakarta Commercial Court.
The plaintiffs say that two years ago, when Manulife bought out most of the joint venture stock that it did not already own, it ended up buying stock that had previously been purchased by another company.
Regardless of the final outcome of the dispute, “Manulife Indonesia is not insolvent,” Manulife says in a statement about the ruling.
Manulife Indonesia has a 10% share of the Indonesian life market, the equivalent of about $280 million in assets, and more than enough risk-based capital, Manulife says.
Manulife says it intends to fight the ruling and stay in Indonesia.
Manulife has accused the judge of receiving a “significant financial enticement” to issue his bankruptcy ruling.
The judge and representatives for the plaintiffs could not immediately be reached for comment.