The textile company, PT Sri Rejeki Isman Tbk (SRIL), has proposed an extension of the Debt Payment Obligation Suspension (PKPU) process that it is currently running for 90 days until next December. This extension was proposed to give the company time to draw up a settlement plan with creditors.
Based on the documents submitted by the company on the Singapore Stock Exchange (SGX), it was stated that the restructuring process currently being carried out by the company was delayed due to the worsening of the Covid-19 situation in Indonesia and the implementation of PPKM.
"The Sritex Group would like to announce that they have submitted a request to the Indonesian Court for an extension of the PKPU Process for an additional 90 days (Application for PKPU Extension)," the statement said, Friday (10/9/2021).
"The request for PKPU extension was made to ensure sufficient time is available for the Sritex Group to communicate with creditors and complete the PKPU preparation plan in the PKPU Session."
As part of the PKPU process, the company will hold a creditors meeting on September 14, 2021, as part of the PKPU process.
The company also submitted a revised work plan proposal and the company's estimated PKPU schedule with the target of voting on the peace plan at the Semarang Commercial Court on December 14, 2021.
Previously, the company said that this extension was requested by the court considering the complexity of the company's debt restructuring process.
"We hope that with this extension, the process towards peace between Sri Rejeki Isman and relevant stakeholders can be completed thoroughly and as well as possible," said Joy Citradewi as Sritex Communication Head.
Furthermore, regarding the restructuring process in Singapore, the Singapore High Court (The Singapore Court) has granted a moratorium on subsidiaries in Singapore.
On May 21, 2021, the Singapore Court has provided protection from all law enforcement actions against the Company's subsidiaries in Singapore with the aim that the restructuring process can run as a whole.
Then, for PKPU in the US, the company and its subsidiaries in Indonesia and Singapore have petitioned the US Bankruptcy Court in the Southern District of New York under Chapter 15 of the US Bankruptcy Act (Chapter 15 Petitions).
The Chapter 15 application was filed for recognition in the US of restructuring processes in Indonesia and Singapore.
On June 10, 2021, the US Bankruptcy Court granted a temporary moratorium under Chapter 15 of the US Bankruptcy Act, to protect the Company and its subsidiaries in Indonesia and Singapore from law enforcement action in the US prior to approval of the Chapter 15 petition.