Integrated textile issuer PT Sri Rejeki Isman Tbk. (SRIL) submitted a peace proposal to creditors on Tuesday (7/9/2021). In the proposal, SRIL requested an extension of the restructuring for up to 15 years.
SRIL's Head of Corporate Communication Joy Citradewi confirmed that SRIL requested an extension of the restructuring for up to 15 years. Sritex takes a long time to mature because it anticipates and considers long-term business continuity, considering external factors that are still uncertain for the next few years.
According to him, the impact of the Covid-19 pandemic is still happening today, which can be seen from the weakening market demand and global logistics issues that have not shown a recovery.
"It takes a long time to recover, as can be seen from the OJK's decision to extend the relaxation period or restructure credit or bank financing," said Joy.
He continued, with the proposed scheme, his party hopes that the company's recovery can provide sustainability aspects to the company's finances, along with improving domestic macro conditions and other export destination countries.
As quoted from Reorg, Tuesday (14/9/2021), Sritex said that the portion of the company's "unsustainable" debt of US$753 million and refinancing of US$850 million or Rp12.12 trillion, could only be completed in the 15th year. based on the company's cash flow projections.
The company's senior notes amounting to US$150 million with an interest of 6.875 percent and maturing in 2024, as well as senior notes of US$225 million with a coupon of 7.25 percent maturing in 2025, will be exchanged for a combination of new bonds with a tenor of 15 years.
In addition, Sritex also proposes to cancel all interest, fines, and other fees related to debt until Sritex is determined to be in a temporary PKPU position.
Based on the proposed debt settlement draft, Sritex will exchange US$150 million bonds, which will mature in 2024, with two new bonds.
The new bonds are worth US$66 million with a 15-year tenor, with a coupon between 0.75 percent to 2.5 percent per year or Series A and Series B worth US$84 million with a 15-year tenor.
The same applies to bonds worth US$255 million maturing in 2025. Sritex will exchange the bonds for two new bonds.
Bondholders will receive two new 15-year bonds worth US$100 million or Series A, with coupons ranging from 0.25 percent to 2.5 percent per annum. Meanwhile, Series B is zero coupon notes worth US$125 million with a 15-year tenor.