BREACH OF PEACE AGREEMENT (HOMOLOGATION) BETWEEN PT LAUTAN WARNA SARI AND PT KERTAS LECES (PERSERO)

Abstract

This research investigates the legal ramifications and resolution strategies associated with the breach of the peace agreement (homologation) between PT Lautan Warna Sari (the Applicant) and PT Kertas Leces (Persero) (the Respondent). The peace agreement, ratified by the Commercial Court under Decision No. 05/PKPU/2014/PN.Niaga.Sby, mandated specific obligations for the Respondent. The Respondent's failure to comply led the Applicant to seek annulment of the agreement, which was subsequently granted by the court through Decision No. 1/Pdt.Sus.Cancellation of Peace/2018/PN Niaga.Sby. This decision resulted in the Respondent's bankruptcy and the ensuing legal consequences. The study addresses two primary issues: (1) the legal consequences of the breach of the peace agreement and (2) the procedural measures taken to resolve the breach. Employing a normative juridical approach, the research demonstrates that the breach led to the agreement's cancellation and the declaration of bankruptcy for the Respondent, who is liable for compensation and risk transfer through the liquidation of bankruptcy assets managed by a curator, as well as court costs. The resolution process includes: first, satisfying the claims of preferred creditors, specifically former employees’ normative rights; second, allocating a percentage of the bankruptcy estate to the state treasury as non-tax revenue; and third, distributing the remaining assets to other creditors based on their receivables.

Keywords

• bankruptcy
• breach of agreement
• legal consequences
• peace agreement.