Textile issuer PT Pan Brothers Tbk (PBRX) claims that the majority of lenders have approved the indicative provision sheet or term sheet offered by the company regarding the extension of the loan facility after the Singapore High Court's moratorium decision.

In the disclosure of information submitted to the stock exchange authority, the company stated that the loan facility renegotiation process is still ongoing. According to the company, in accordance with the Singapore High Court's moratorium decision, they have up to 6 months to complete the restructuring process with the lenders.

"We believe that the extension process can be approved by a number of related parties so that in the third quarter of 2021 the finalization of the syndicated facility extension can be carried out," he wrote.

As for the moratorium decision, PBRX considers Maybank Indonesia as one of the company's syndicated creditors to comply with the moratorium decision from the court in Singapore. The reason is that the syndicated credit facilitation agreement is regulated based on the common law legal system.

"The moratorium decision is binding on all creditors in the syndicated facility agreement where Maybank Indonesia is one of the banks that signed the syndicated facility agreement," he explained.

As is known, the textile issuer PT Pan Brothers Tbk has received a moratorium from the Singapore Court until July 1, 2021. The moratorium is related to the company's debts worth US$309.6 million with creditors in Singapore.

The company submitted to the stock exchange authority, the moratorium was intended to propose a scheme of arrangement for all creditors of the company and its subsidiaries, including bondholders.

"The company's bonds will also mature in less than 1 year, for that we also need to immediately negotiate for the refinancing of the bonds," the company wrote.

As for the details, of the total debt worth US$309.6 million or around Rp. 4.3 trillion if calculated using the exchange rate of 14,134 per US dollar, the bond value is US$171.1 million. While the rest are syndicated loans with a limit of US$138.5 million.