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Debt Compromise Agreement
"I need a Debt Compromise Agreement for my manufacturing company to settle a $500,000 outstanding loan with ABC Bank Indonesia, where they've agreed to accept 70% of the total debt paid in monthly installments starting March 2025, with a corporate guarantee from our parent company."
1. Parties: Identification of the debtor and creditor(s), including their complete legal names, addresses, and authorized representatives
2. Background: Recitals explaining the original debt, current outstanding amount, and circumstances leading to the compromise agreement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Original Debt', 'Compromise Sum', 'Settlement Date', etc.
4. Acknowledgment of Debt: Clear statement of the original debt amount and acknowledgment by the debtor
5. Terms of Compromise: Details of the compromised amount and terms of settlement, including any discount or reduction
6. Payment Terms: Schedule of payments, payment method, and consequences of default
7. Releases and Waivers: Mutual releases and waivers upon completion of the compromise payments
8. Representations and Warranties: Standard representations about capacity to enter agreement and accuracy of financial information
9. Events of Default: Definition of default events and consequences
10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of forum for disputes
11. Notices: Process for giving formal notices under the agreement
12. Execution: Signature blocks and execution formalities
1. Security Arrangements: Include when the compromise agreement is secured by collateral or guarantees
2. Multiple Creditor Provisions: Required when there are multiple creditors involved in the compromise
3. Corporate Guarantee: Include when a parent company or related entity is providing a guarantee
4. Tax Provisions: Detailed tax implications and responsibilities when significant tax consequences arise from the debt compromise
5. Regulatory Compliance: Special provisions when either party is regulated by OJK or other regulatory bodies
6. Restructuring Terms: Include when the compromise involves debt restructuring rather than simple reduction
7. Confidentiality: Detailed confidentiality provisions when parties require strict privacy of terms
1. Schedule 1 - Debt Details: Detailed breakdown of the original debt, including principal, interest, and other charges
2. Schedule 2 - Payment Schedule: Detailed payment schedule with dates, amounts, and payment methods
3. Schedule 3 - Security Details: Details of any security or collateral provided under the agreement
4. Schedule 4 - Original Debt Documentation: List and copies of original debt documents being compromised
5. Schedule 5 - Corporate Authorizations: Copies of corporate approvals and authorizations
6. Appendix A - Form of Release: Template for the final release document to be issued upon completion
7. Appendix B - Calculation of Compromise Sum: Detailed calculation showing how the compromise amount was determined
Authors
Banking and Financial Services
Real Estate and Property
Manufacturing
Retail and Commerce
Construction
Mining and Resources
Agriculture
Transportation and Logistics
Healthcare
Technology and Communications
Hospitality and Tourism
Legal
Finance
Treasury
Credit Risk
Collections
Compliance
Corporate Secretariat
Debt Recovery
Account Management
Business Development
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Debt Recovery Manager
Credit Risk Manager
Treasury Manager
Restructuring Officer
Collections Manager
Corporate Secretary
Financial Controller
Compliance Officer
Account Manager
Recovery Specialist
Business Development Manager
Find the exact document you need
Debt Settlement Agreement Letter
An Indonesian law-compliant formal letter documenting debt settlement terms between creditor and debtor, establishing legally binding payment arrangements and settlement conditions.
Debt Compromise Agreement
An Indonesian law-governed agreement documenting the settlement of debt obligations for a reduced amount or modified terms between creditor and debtor.
Letter Of Agreement For Payment Of Debt
An Indonesian law-governed document that formalizes debt payment arrangements between creditor and debtor, including payment terms and obligations.
Loan Settlement Agreement
An Indonesian law-governed agreement that establishes terms for settling an existing loan obligation between lender and borrower.
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