WIKA Management Opens Voice On The Reason Why Stocks Break Down IDX

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Wijaya Karya (Persero) Tbk has opened its voice about the suspension or temporary suspension of trading of WIKA shares on the Indonesia Stock Exchange (IDX). This suspension took place after the company failed to pay off the payment of two debt securities.

The suspension of WIKA shares is valid from today 18 February to further announcement from the IDX authorities.

WIKA Corporate Secretary Mahendra Vijaya acknowledged the delay in payment to bond holders and sukuk. However, he said WIKA was committed to fulfilling its obligations on bond interest and sukuk yields as scheduled.

"Until now, the company continues to strive to fulfill its obligations on bond interest and sukuk returns to bond holders and sukuk according to the schedule in the agreement," he said in an official statement, Selesa, February 18.

In 2024, the company has succeeded in paying off the principal of bonds and sukuk amounting to Rp1.27 trillion, both due and through the call option (acceleration) mechanism as a fulfillment of the Company for its obligations.

However, Mahendra said that in facing the current business dynamics, WIKA still needs an extension of time for the payment of the remaining principal while still providing the interest according to the amount and schedule in the agreement.

The company has submitted a proposal for a portion payment of the maturity principal and extended the remaining principal while still paying the interest according to the amount and schedule in the agreement. However, the proposal has not been able to reach a quorum to make a decision," he said.

In addition, Mahendra explained that his party also continues to communicate with bond holders and Sukuk to reach a mutual agreement in terms of settlement of obligations that can accommodate the interests of the parties.

"The company also continues to strive to obtain new contracts needed to generate cash for the fulfillment of obligations and sustainability of restructuring and the continuity of the Company's business in the future," he said.

Regarding the stock suspension, Mahendra said WIKA respects and complies with the IDX's decision as the regulator.

"We can say that this mechanism is the authority of the IDX as the regulator, the Company fully understands and obeys the decision as a legal entity that obeys applicable regulations," he explained.

Currently, continued Mahendra, WIKA also continues to carry out the restructuring process which has gradually shown progressive results.

"This can be seen through the Company's increasingly efficient operating performance, the operating cash flow becomes positive and the financial ratio improves compared to the previous period," he said.