CP Prima, through Singapore-based shareholder Red Dragon Pte. Ltd, issued bonds worth US$200 million in June 2007 with a coupon rate of 2 percent and a maturity period of 2010.
He claimed the failed rights issue in December was carried out based on "bad intentions", because the management had not sought prior approval from bondholders.
The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) annulled CP Prima's shareholder meeting that approved the December rights issue plan because the meeting failed to meet the required 50 percent of shareholders.
The rights issue in December was estimated to be worth Rp 1.75 trillion ($152.25 million), with CP Prima issuing 17.5 billion new shares.
In response to Lin's allegation, CP Prima corporate communications director Rizal Shahab, who attended Lin's press conference, said Lin's attempt to prevent the upcoming rights issue was part of the bondholder scheme to take over the company in a hostile manner.
"I know who is behind you *Lin*. They're all hedge funds," a furious Rizal told Lin before storming out of the conference venue.
Rizal explained the rights issue was done merely to help improve the company's debt-to-equity ratio.
He also accused Lin of using his political clout to influence Bapepam to kill the December rights issue. But Lin denied the allegations.
"How could I influence Bapepam? It'd be like a lieutenant influencing his general - it's impossible." Lin refused to confirm whether the bondholders were keen to settle the dispute in court.