(Bloomberg) -- Ares Management Corp. and Tor Investment Management won a Singaporean court ruling that found an Indonesian borrower in contempt over a $200 million private credit loan, marking a rare win for direct lenders grappling with legal complexities in Asia. 

The Supreme Court of Singapore Friday sentenced David Salim — a businessman in Indonesia with ties to one of the country’s wealthiest families — to four months of imprisonment for defying an order to stop suing his lenders in Jakarta over the loan.

The case illustrates risks for global private credit lenders in chasing high returns in emerging markets. Justice Chua Lee Ming’s ruling may also remove some legal hurdles for the lenders as they proceed with their collection efforts. 

Last year, the lenders won an arbitration ruling in Singapore to be repaid on the loan that was lent in 2020. But Salim, who’s the sponsor of the borrowing companies he controls, repeatedly filed lawsuits in Indonesia as part of his attempts to stall repayment, the lenders said. The lenders, who also won an anti-suit injunction in Singapore, then sued to enforce the order.

Salim can avoid imprisonment if he agrees to drop two lawsuits in Indonesia by June 7, according to the judge.

The sentence is warranted given Salim’s “egregious conduct” in breaching the anti-suit injunction, Chua said. 

If Salim agrees to drop the two suits in Indonesia, his sentence will be reduced to a fine, according to Chua’s order. 

Salim’s representatives didn’t immediately reply to a request for comment.

The case number is HC/SUM 387/2024. 

(Updates with court’s sentencing and other details throughout.)

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