JPMorgan Sues Indonesia’s Biggest Drug Maker Over Dollar Hedge >> 2009-01-15 12:54:08.907 GMT >> >> >> By James Lumley >> Jan. 15 (Bloomberg) -- JPMorgan Chase & Co.., the second- >> largest U.S. bank by assets, sued Indonesia’s biggest drugmaker, >> seeking $19.2 million over allegations the company reneged on a >> currency-hedging agreement. >> PT Kalbe Farma refused to honor two exchange-rate derivative >> contracts last year and JPMorgan is seeking payment of an early >> termination fee, the bank said in a lawsuit filed in London in >> September and released in part by the court this week. >> Kalbe, a client of JPMorgan’s credit and rates markets >> division, hedged against currency fluctuations by exchanging >> rupiahs for dollars until June. Kalbe’s products are made from >> imported materials bought with U.S. dollars and sold for >> Indonesian rupiahs, according to the filing. >> The Jakarta-based company stopped paying in June and sent a >> letter to JPMorgan stating their contract was no longer legally >> binding and alleging negligence, according to the filing. >> JPMorgan, based in New York, sued in London’s High Court to >> enforce the deal. >> “JPM performed its obligations under the transactions by >> making payments to Kalbe when due,” the bank said in its filing. >> “Kalbe accepted the payments,” the filing said. “and at no >> time prior to 27 June 2008 did it indicate to JPM that it >> believed it had not entered into binding contracts.” >> Justian Sumardi, Kalbe’s corporate secretary, couldn’t be >> reached for comment at his office or on his mobile phone. David >> Wells, a JPMorgan spokesman, declined to comment. >> >> For Related News: >> UK Legal News: NI ELEGAL <GO> >> Top Legal News: TLAW <GO> >> >> --With reporting by Arijit Ghosh in Jakarta. Editor: Jeff >> St.Onge, Anthony Aarons. >> >> To contact the reporter on this story: >> James Lumley in London at +44 20 7073-3684 or >> jluml...@bloomberg.net. >> >> To contact the editor responsible for this story: >> Anthony Aarons at +44-20-7673-2227 or >> aaar...@bloomberg.net.
