The application for Suspension of Obligation for Payment of Debts (“PKPU”) ideally shall aim to achieve reconciliation between the parties. Reconciliation in PKPU which has been agreed upon and has obtained validation from the panel of judges does not eliminate the possibility for a cancellation of ratification application to be submitted. According to Article 170 paragraph (1) of Law Number 37 Year 2004 on Bankruptcy and Suspension of Obligation for Payment of Debts, creditors can request for a cancellation of reconciliation in the court if the debtor has been proven to be negligent in fulfilling the contents of reconciliation which has been validated. The application for the cancellation of reconciliation occurred in the case of PT Nyonya Meneer where previously, an application for PKPU has been submitted by their creditor towards PT Nyonya Meneer (respondent) and has achieved reconciliation regarding their debt restructuring which was then validated within verdict of reconciliation validation (homologasi). The said reconciliation in PKPU did not go as planned where one of the creditors requested for a cancellation of reconciliation upon a validated verdict of reconciliation by reason that the respondent has been negligent in fulfilling their obligations. The application for the cancellation of reconciliation was then granted by the panel of judges which results in the declaration of bankruptcy of the respondent. Within this research, the author will review the requirements for PKPU application and the considerations of the Panel of Judges which grants the previously mentioned request for the cancellation of reconciliation, whether the respondent has been proven to be negligent in fulfilling their obligation as had been agreed upon. The type of research which is conducted is a normative legal research with statute and case approaches relating to Bankruptcy and PKPU. The result of research shows that in providing their consideration, the panel of judges refers to the proposal of reconciliation plan, and not to the verdict of reconciliation validation (homologasi) which has obtained binding legal effect according to Article 164 of the Bankruptcy Law. In addition, regarding the requirements for PKPU application is regulated within Article 222 of the Bankruptcy Law where it does not only provide authority for the debtor but also to the creditor to submit a PKPU application.