Star-Bulletin file
Indonesian businessman Sukamto Sia, who owes
$296 million in debts, would be exposed to creditors
again if his bankruptcy protection is withdrawn.

Sia bankruptcy
parties consider
case dismissal

The move would force
creditors to pursue the former
Hawaii banker on their own

By Peter Wagner
Star-Bulletin

Some parties in the Honolulu bankruptcy of Sukamto Sia are considering dismissal of the case, a liquidation that so far has yielded less than $250,000 -- hardly enough to cover the costs of ferreting out the wealthy Indonesian businessman's far-flung holdings much less repay $296 million in debts.

The nearly quarter-million is a far cry from the $9.3 million Sia listed as assets in his November bankruptcy filing, including $1,064,500 in personal property in Hawaii.

Guido Giacometti, a court-appointed trustee whose job it is to liquidate Sia's assets to repay creditors, said yesterday he is considering a suggestion by Sia to drop the case.

"There's been some discussion about that but we don't know where it's going to go," said Giacometti, who has been unable to budge the foreign creditors holding most of Sia's assets as collateral on loans.

Also considering the overture are some creditors and the Office of the U.S. Trustee, Giacometti said.

No motion for dismissal has been filed, an action requiring approval by the U.S. Bankruptcy Court. A dismissal would lift the protection of the court, exposing Sia to lawsuits by creditors here and abroad.

Formerly known as Sukarman Sukamto, Sia filed for bankruptcy in Honolulu last November, a month after his arrest in Las Vegas for $13.5 million in gambling debts. Nevada prosecutors charged Sia with bouncing about $6 million in checks at Rio Casino and $8.5 million at Caesars Palace.

Among Sia's principal holdings in Hawaii are controlling shares in the Bank of Honolulu, a stake in Executive Center downtown, and residential property.

But Giacometti has had little luck in collecting the assets, mostly held in foreign jurisdictions.

"This is a strange case," said Giacometti, who has raised about $250,000, mostly from the auction of Sia's private wine collection, several cars, and a few other possessions. "Here's a guy with tons of money and tons of debt but it's difficult for us to get control of his assets. We can't go running around the world chasing after his assets."

Giacometti since February has been trying to do just that, an exercise in frustration despite the help of private attorneys and consultants here and in Asia.

"If I go to a foreign bank and I say I'm a trustee and I want to see his bank account, that's not an easy thing to get access to," Giacometti said.

"You try to be polite and do it informally, but a lot of times I get letters back saying we don't recognize your authority so we're not going to respond."

Meanwhile, bills for professional services in the case are mounting. Giacometti recently filed a reimbursement request for about $54,000 in legal and other services during the initial months of the case. Continuing costs, he said, could overtake liquidation proceeds if the case continues much longer.

Sia's attorney, Jerrold Guben, said a U.S. bankruptcy court is the wrong place for a case dominated by foreign creditors.

"We're dealing with five or six different legal systems in this case," he said.

With the exception of Las Vegas casinos and a New York bank, most of the debts are owed in Thailand, Indonesia, Hong Kong, England, France, and Germany.

One creditor that would welcome a dismissal is Citibank of Hong Kong, holding residential property belonging to Sia in Singapore as collateral on $7 million in loans.

"From our perspective the bankruptcy doesn't serve any real purpose," said Tom Roesser, a Honolulu attorney representing the bank.

Roesser notes that while Sia has more than $9 million in assets, they are mostly encumbered and offer little consolation to a host of creditors.

Honolulu attorney Don Gelber, representing the Rio and Caesars Palace, declined comment.

The bankruptcy began as a Chapter 11 reorganization. But in April it was converted to a Chapter 7 liquidation to expedite the complex bankruptcy.

One holding Giacometti is trying to get his hands on is Sia's largest holding in Hawaii -- a 76 percent share in the privately held Bank of Honolulu.

Sia resigned his post as bank chairman shortly before filing for bankruptcy.

According to Sia's bankruptcy filing, the shares are being held as collateral by a Singapore bank, a matter currently under investigation by the trustee.