Sritex Owned By Conglomerate Iwan Lukminto And 3 Of Its Subsidiaries Escaped The Threat Of Bankruptcy

JAKARTA - The textile company, PT Sri Rejeki Isman Tbk (SRIL) alias Sritex and its three subsidiaries finally escaped the threat of bankruptcy. This follows the approval of the majority of creditors, Sritex's Suspension of Debt Payment Obligations (PKPU) ended with the ratification of the peace plan proposed by Stritex.

As is known, Sritex and its three subsidiaries have been in a state of PKPU since May 6 with the approval of the PKPU application submitted by CV Prima Karya. The three subsidiaries are PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya.

Alfin Sulaiman, member of the Sritex PKPU Management Team, said that the Deliberative Meeting of the Panel of Judges held at the Commercial Court at the Semarang District Court on Tuesday, January 25 decided to ratify the peace plan for Sritex and its subsidiaries.

In an information disclosure on the Indonesia Stock Exchange (IDX), quoted Wednesday, January 26, Sritex Corporate Secretary Welly Salam said, with the homologation of the peace plan, Sritex and its subsidiaries are no longer in a state of Debt Payment Obligation (PKPU).

As is known, the majority of creditors have given their approval to the peace plan proposal submitted by Sritex in the creditors' meeting with a voting agenda, aka voting, which was held last Friday, January 21.

Based on data from the Sritex PKPU Management Team, 100 percent of the total number of separatist creditors who were present representing all claims of separatist creditors who were present voted in agreement. Meanwhile, 75 percent of the number of concurrent creditors who were present, representing 67.39 percent of the concurrent creditors who attended also voted in favor.

Thus, the vote on the Sritex peace plan has filled the quorum. According to Alfin, as a labor-intensive company that supports the lives of the majority of the people of Solo and Sukoharjo, Sritex should be released from the threat of bankruptcy and continue its business.

Sritex President Director Iwan Setiawan Lukminto expressed his appreciation for the achievement of peace, especially to creditors who are willing to cooperate in the success of the company's restructuring. According to Iwan, creditor support is very important for the peace process and corporate restructuring.

"We believe that good relations and full support from creditors can be the basis for the company to be even better," said Iwan in an official statement.

Sritex's success in achieving peace with its creditors is a reflection of the creditors' trust in Sritex and the business continuity and future of the company. Sritex respects the attitude of concurrent creditors who reject the peace proposal.

Understandably, the number of votes in favor of the concurrent creditors barely reached the quorum. As is known, based on the Bankruptcy Law and PKPU, the peace plan can be accepted based on the approval of more than half the number of creditors, both concurrent and separatist, who are present and represent at least 2/3 of the or all claims of creditors, both concurrent and separatist who are present.

Based on the homologated peace plan, Sritex in its proposal proposes to cancel any and all interest, fines and other fees recorded in relation to its debts on the homologation date.

The principal debt that has matured and is payable based on the original financial documents on the date of the PKPU decision that Sritex will settle is IDR 19.96 trillion.

The principal amount of the debt consists of bilateral facilities of IDR 5.87 trillion and 178.96 million and 7.5 million euros, syndicated facilities of 350.03 million US dollars, bonds payable of 375 million US dollars, medium term notes (MTN) debt of USD 25 million, and leasing facilities of IDR 289.5 billion and USD 1 million.

Sritex will settle all bilateral and syndicated debts through the allocation of Secured Working Capital Revolver, Secured Term Loan, and Unsecured Term Loan or Mandatory Convertible Loan.

Sritex will restructure the principal outstanding from bilateral debt and syndicated debt worth USD 267.2 million into Secured Working Capital Revolver. This facility has a term of five years from the effective date.

Meanwhile, the principal bilateral debt and syndicated debt worth USD 340.1 million will be restructured into a Secured Term Loan facility. The term is nine years.

Then, Sritex will restructure the principal of bilateral debt and syndicated debt worth USD 344 million into Unsecured Term Loan facilities. The term of this facility is 12 years after the effective date.

Immediately after the effective date, Sritex will invite bilateral and syndicated debt holders to choose to receive an Unsecured Term Loan or Mandatory Convertible Loan. Debt holders who do not want to receive an Unsecured Term Loan can choose a Mandatory Convertible Loan.

The Mandatory Convertible Loan has a term of five years from the effective date. The debt conversion of SRIL shares can be started from the third year. At maturity, any and all of the outstanding principal of the Mandatory Convertible Loan will be converted into SRIL shares.