According to the Encyclopedia of Economic Trade Finance, bankruptcy is a condition in which a person by a court is declared bankrupt and whose assets or inheritance have been earmarked for paying debts. Meanwhile, according to the Bankruptcy Act, it can be interpreted as a general confiscation of all the assets of a Bankrupt Debtor whose management and settlement is carried out by the Curator under the supervision of the Supervising Judge as regulated in the Act.
Bankruptcy is a threat that is very likely to occur for anyone who manages a business or business. This threat does not only apply to newly established companies, but also to companies that have existed for decades. Every company has the potential to go bankrupt, even though the possibility is only 0.01%. Bankruptcy will be very frightening for the company, because the company is in a threatened position and could be destroyed. Find out more about the factors causing bankruptcy companies below.
Company Requirements Declared Bankrupt
Factors That Cause Bankrupt Company Must Be Known According to the law, a company can be declared bankrupt if a company has fulfilled the bankrupt legal requirements. These requirements, according to Article 2 of the Bankruptcy Law, include a debtor who has two or more creditors and does not pay at least one debt that is due and can be billed, declared bankrupt by a court decision. Creditors in this case are both concurrent creditors, separatist creditors or preferred creditors. While debt that has matured means the obligation to pay debts that have fallen due, either because it has been agreed, because of the acceleration of billing time according to the agreement or because of a court decision, arbitrator or arbitral tribunal. Bankruptcy applications under the Bankruptcy Act may be submitted by the debtor, one or more creditors, prosecutors, Bank Indonesia, Securities Companies or Insurance Companies.
Causes of Bankruptcy Companies
Factors That Cause Bankruptcy Company Must Know There are several factors that cause bankruptcy companies, including the following:
Not able to capture the needs of consumers, so companies can provide services or products that are accepted by the market
Focusing too much on product development, so companies can forget the needs of consumers. Companies that are too focused on product development will lose sensitivity to what is happening inside the company, outside situations, and so on.
Experiencing excessive fear, such as fear of bankruptcy, fear of loss, fear of not being able to serve consumers, fear of inability to overcome problems, and others. actually the fear is natural. However, if the fear has exceeded the normal limit, then these conditions must be watched out because it will hamper the company’s performance and bring destruction.
Stop to innovate in business. Innovation is important to be done by every entrepreneur or businessman. Because without innovation, products sold over time will be boring for the people who are the target market.
Lack of observing the movements of competitors or competitors, so that will cause a company to compete and fall behind. A company must always pay attention to the steps taken by competitors.
Set prices that are too expensive. Indeed there are some people who believe that high prices will make a company’s products look better and more luxurious than the original. However, how would it be if a new company issued a product similar to your company’s goods and sold them much cheaper. Then chances are your company will be left behind by consumers.
Other causes such as being in debt, excessive expansion, fraud by the CEO, mismanagement of the company, uncontrolled spending, and much more.
Bankruptcy Company Case
PT Indah Raya Widya Plywood Industries has submitted a loan application to PT Bank Negara Indonesia (Persero) Tbk. The credit application has been approved by PT BNI (Persero) Tbk, where the form of credit loans is divided into two currencies, namely debt in the form of rupiah and US Dollar. The loan agreement in rupiah was first made on February 3, 1994. With a maximum loan facility of Rp 2,300,000,000, and was amended in the last credit agreement on July 28, 2000. Whereas the loan agreement in US Dollar was made on the 24th December 1987
With a maximum loan facility of Rp.4,200,000,000, and was last amended in a credit agreement dated April 5, 1993.