BENEFITS OF IMPLEMENTING POSTPONEMENT OF DEBT PAYMENT OBLIGATIONS FOR DEBTORS AND CREDITORS

Abstract

A Suspension of Debt Payment Obligations (PKPU) is a period granted by a Commercial Court Judge to a debtor and creditor to negotiate payment of the debtor's debt, either in part or in full, including, if necessary, debt restructuring. In practice, a Suspension of Debt Payment Obligations (PKPU) can provide maximum benefits in preventing a company from going bankrupt. A PKPU is highly beneficial because the reconciliation agreement established through it binds other creditors outside the PKPU, allowing the debtor to continue restructuring its business without fear of claims from creditors outside the PKPU. Creditors are also protected by the PKPU because if the reconciliation agreement is violated, the creditor can file a petition to the Commercial Court to annul the reconciliation agreement, and the debtor will automatically be declared bankrupt.