The Singapore High Court approved the restructuring scheme proposed by PT Pan Brothers Tbk in a trial that took place on January 17, 2022. The information was submitted by the management of the issuer coded PBRX in a letter containing material facts to the Financial Services Authority. "The regulatory scheme set out in Schedule 1 of the regulatory scheme has been approved in accordance with Paragraph 1 Article 71 of Law Number 40 of 2018 which regulates restructuring and disbandment," said Director of Pan Brothers Fitri Ratnasari Hartono in an information disclosure report, Tuesday, January 18, 2022.

Subsequently, the Singapore High Court appointed and approved Geoffrey David Simms as the foreign representative of the applicant. The representative will seek acknowledgment of proceedings that have taken place in Singapore overseas, including the United States, pursuant to Chapter 15 title 11 of the United States Codes.

Then, the Singapore High Court also released the applicant and creditors from submitting other arrangements needed in the restructuring process. "The company will continue to provide updated information regarding the ongoing restructuring in accordance with applicable regulations," Fitri said.

Pan Brothers previously obtained a debt repayment moratorium from the Singapore High Court. The company's debt burden reached US$ 309.6 million.

The debt consists of a syndicated loan with a value of US$ 138.5 million and bonds of US$ 171.1 million. In December 2021, the textile company received approval from the majority of lenders for the term sheet in a restructuring effort. The voting results show that the majority of creditors agree with the term sheet proposed by the company.