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A sad fate befell one of the listed textile companies in the country. PT Sri Rejeki Isman Tbk (SRIL). The shares of the company, better known as SriTex, are now in danger of being expelled from the Stock Exchange, aka delisting. Referring to Stock Exchange Regulation No: I-I, a public company will be delisted if its shares are suspended for 24 months. To note, SRIL shares were suspended for the first time on May 18, 2021. This means that SRIL shares have been suspended for one year and have one year remaining before being expelled, although the 24 month provision is not absolute.

The beginning of this problem was about the issuer's debt default. The swelling of SRIL's debt can be seen from its financial statements in 2020.

As of December 2020, SRIL's short-term bank debt was recorded at US$ 277.5 million, whereas in the previous year it was still US$ 67.6 million.

Meanwhile, SRIL also has a Medium Term Note (MTN) worth US$ 25 million. Meanwhile, long-term bank loans that mature in one year are worth US$ 6.2 million.

In total, SRIL's liabilities with interest expense reached US$ 308.7 million. SRIL's financial burden reached US$ 75.5 million. Meanwhile, the company's cash and cash equivalents only reached US$ 187.6 million.

With this short-term debt default, SRIL had to face the Postponement of Debt Payment Obligations (PKPU).

Unmitigated the PKPU process faced in three different jurisdictions from Indonesia, Singapore, to the United States (US).

The existence of the PKPU process also prevented SRIL from paying the principal and interest on the US$ 25 million MTN owned.

In a letter signed by Sritex Finance Director Allan Moran Severino, it was stated that the non-payment of this MTN was the impact of the PKPU currently being run by the company.

Furthermore, it is also stated that the company may not make debt payments, including MTN which matures on May 18, 2021, unless the company pays off all debts owed to creditors.

Finally, when referring to the company's financial statements as of September 2021, SRIL is recorded to have short-term bank debt of US$ 601.9 million.

Meanwhile, long-term bank loans maturing within a year reached US$ 382.4 million. Then there is also MTN worth US$ 25 million and the last is bonds payable worth US$ 360.6 million.

SRIL is a textile company and 59% of its shares are owned by PT Huddleston Indonesia.

This textile company carried out a corporate action in the form of an initial public offering (IPO) on June 17, 2013 by engaging PT Bahana Sekuritas as the underwriter.

At that time, the price of one unit of SRIL shares at the time of the IPO was pegged at Rp. 240. After the IPO, the price of SRIL's shares tended to rise and fall.

However, SRIL's share price reached its highest level in history on March 6, 2017. At that time, SRIL's share price closed at Rp. 496/unit.

After that incident, SRIL's stock price was unable to return to its all-time high level. It even tends to fall, especially since July 2019.

That was the story of how SRIL's shares could be threatened with being expelled from the stock exchange in its 10th year as a public company. Whereas previously, SRIL shares had become a stock that was included in the LQ45 elite index constituent.