Maybank Bankrupt Application Rejected, Pan Brothers Business And Share Price Predicted To Soar

JAKARTA - The application for a Statement of Bankruptcy submitted by PT Bank Maybank Indonesia Tbk (BNII) to PT Pan Brothers Tbk (PBRX) was officially rejected by the Commercial Court at the Central Jakarta Court (Central Jakarta District Court) at a hearing on November 11, 2021.

The Panel of Judges decided to reject Maybank's petition for bankruptcy in its entirety and sentenced Maybank to pay the court fees incurred as a result of this petition for bankruptcy declaration. There are at least three legal considerations by the Panel of Judges on the decision.

First, the Panel of Judges considers that there is still a legal relationship between the company and its creditors which is in the process of being resolved and is currently being processed in the Singapore State Court. Second, the Panel of Judges is of the opinion that if the petition for bankruptcy is maintained, it will become a knot of problems that are no longer simple.

Third, the Panel of Judges considers that the fulfillment of the formal requirements for bankruptcy legal remedies cannot be proven simply in accordance with the provisions of Article 8 paragraph (4) in the Bankruptcy Law, so it should be rejected.

"The company fully respects and welcomes the legal decision that has been decided by the Central Jakarta District Court," said Pan Brothers Corporate Secretary Iswardeni in an official statement, Monday 15 November.

Currently, Pan Brothers and the business group together with Financial Advisors and Legal Advisors can refocus on completing the restructuring. Currently, it has completed restructuring schemes and submitted term sheet proposals to syndicated and bilateral banks.

In the term sheet, the company and the business group propose an extension of two years for active and syndicated bilateral loan facilities, and three years for passive bilateral loan facilities. In general, the said banks have approved the term sheet proposal as intended.

He said the various challenges during the Covid-19 pandemic had affected the company's performance in general. However, in the midst of an unfavorable situation, the company is still able to record positive profits to date.

"All of this can be realized because of the support and trust from buyers and suppliers so that operational activities can continue to run normally without any reductions in employees / layoffs. In fact, since October 2020 until now, Pan Brothers and the group have always and continue to pay interest obligations regularly. ," said Iswardeni.

This bankruptcy filing has been submitted by Maybank to the Commercial Court at the Central Jakarta District Court since early August 2021, after previously Maybank also filed a lawsuit for postponement of debt payment obligations (PKPU) to the Commercial Court at the Central Jakarta District Court on May 24, 2021 and was rejected by the panel of judges. on 27 July 2021.

"We believe that all the maximum efforts we have made will be able to realize the company's business plan and in line with the government's efforts to support the recovery of Indonesia's economic growth," he said.

Currently, the market for the company's industry is very open with the opportunity to receive shifting orders from many countries, which see Indonesia as the country most ready to accept it.

"And Pan Brothers and the group are producer partners of various world brands that have a high level of compliance, both social, safety, and technical compliance with export standards," he said.

He admitted that several capital market investors admitted that the stock price of Pan Brothers did not reflect its fundamental condition.

"This is undervalued if we look at the track record of PBRX trading for quite a long time in the price range of Rp. 450-500 per share. This is equivalent to PER 8 to 9 times," he said.

In the May-July 2021 period (when the PKPU application was submitted) Pan Brothers' shares were in the range of Rp162-172 per share. In August 2021 (when the bankruptcy application was submitted) the company's share price was in the range of Rp. 162-167 per share.

He is optimistic that after this positive news, the stock price of Pan Brothers will be biased back to a reasonable price and gradually rise to around Rp400 per share, with a PER of 7.5 times. This figure refers to the company's highest share price of IDR 180 per share on Friday, November 12, 2021.