Rekind Grateful for Concise Duration of PKPU Post homologation 

The management of PT Rekayasa Industri (Rekind) informed the Company’s success in realizing the Company’s Suspension of Debt Payment Obligation (PKPU) homologation. This success should be grateful for instead of euphoria.

At least, that is the picture recorded at the Town Hall Meeting, which was held at the ROB II Building, Floor I, Rekind Head Office, Monday 5 February 2024.

Rekind’s success at PKPU was marked by the approval of the homologation by the Panel of Judges at the Commercial Court at the Central Jakarta District Court, on January 31 2024. The decision refers to a voting session on the PKPU peace proposal from 229 creditors, both from concurrent and separatist votes.

Through this vote, Rekind succeeded in gaining approval for the peace proposal with concurrent votes of 96.94% of the total creditors (headcount) and 98.99% of the value of the claims (value) which had been recognized and verified by the Management Team. Meanwhile, all separatist votes reached 100% of the vote, both in terms of headcount and value.

This success indicates that Rekind is preparing to start a new chapter in its business journey, through Financial Restructuring and Business Transformation within the framework of the Corporate Restructuring Plan which was signed by BUMN Minister Erick Thohir on January 2 2024.

“Our success at PKPU is one of the doors we entered to then open next door to make Rekind the best company and a source of pride for all of us as well as the nation and state,” emphasized Rekind Director Triyani Utaminingsih, in his speech at the event.

He admitted that PKPU is also a valuable and forging lesson that must be learned quickly. If this matter drags on in court, of course it will also have negative implications for the company.

It is also not easy to convince creditors, including banks, vendors and sub contractors, that PKPU is the best way for both parties. “Thank God we can achieve this hope together, of course based on struggle and enthusiasm so that this company can show its best existence again,” explained Triyani Utaminingsih.

He also expressed a positive appreciation for the efforts and hard work shown by the Rekind Internal Team who were able to work optimally and professionally, so that within 77 calendar days, a peace agreement could be obtained according to mutual expectations.

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Sriwijaya Air Wins Creditor’s Nod for $488 Million Debt Revamp

Distressed Indonesian carrier Sriwijaya Air won approval from creditors to restructure debt in a court-assisted process, the latest example of how the Covid crisis continues to reverberate even as travel bounces back.

The agreement, reached at a Jakarta court, involves as much as 7.3 trillion rupiah ($488 million) of debt, with maturities between 8 and 15 years, the airline’s lawyers said in a statement Wednesday. Under the plan, Sriwijaya will seek new strategic investment and it may include an initial public offering.

“This can reduce financial debt by around 80%,” the airline’s financial consultant Noprian Fadli at Triple B Advisory said in the statement.The development highlights how the pandemic continues to occupy airlines and lenders after the slump in travel caused debt to mount. Flag carrier PT Garuda Indonesia also went through a $9.8 billion debt restructuring in 2022.
Garuda took over Sriwijaya’s operations in 2018 to expedite its debt restructuring, but the agreement ended within a year. Sriwijaya owed Garuda about $37 million as of the end of March. Covid’s impact on travel piled further pressure on Sriwijaya, as did a crash in January 2021, when all 62 people on board a domestic flight were killed.

Air travel has recovered fast since Covid restrictions were lifted. Latest figures from the Association of Asia Pacific Airlines show international passenger traffic in the region was up 193% in May from a year earlier.

Source : Bloomberg /  Fathiya Dahrul and Norman Harsono 

Peace Agreement Ratified by the Panel of Judges, PKPU Totalindo (TOPS) Ends

KONTAN.CO.ID, JAKARTA The Panel of Judges at the Commercial Court finally ratified the homologation agreement between the debtor of PT Totalindo Eka Persada Tbk (TOPS) and the creditors at the Central Jakarta District Court on Tuesday evening (15/8) . The vote was previously held on August 9, 2023, at the Commercial Court in the Central Jakarta District Court. The voting was attended by 100% of the separatist creditors, resulting in 100% approval votes for the total invoice value of IDR 974 billion.

Concurrent creditors who attended the voting were 274 out of a total of 315 concurrent creditors. Votes agreed by number as much as 95.7%, or as many as 259 of the 274 concurrent creditors who were present, for a total bill value of IDR 459 billion. The composition plan was approved by the majority of creditors, and based on a court decision, the status changed to a Settlement Agreement. The court conducted homologation and made a decision to ratify the Settlement Agreement. That way, legally, the postponement of debt payment obligations (PKPU) is declared complete and binding on the debtor and creditors. With the ratification of the approval of the PKPU peace plan by the creditors, Totalindo will settle all debts through a number of schemes based on the amount of the debt to the creditor groups.

The Composition Plan that has been approved has been prepared taking into account the interests of creditors and TOPS’ ability to fulfill debt restructuring obligations to creditors.
TOPS Main Deputy Director Solomon Sihombing expressed his gratitude to the creditors for the support and trust given to TOPS.
Solomon admitted that he was optimistic that the approval of the peace plan would provide good momentum to spur positive and sustainable growth in business performance. Thus, Totalindo is better prepared to face various challenges ahead,” he said in an official statement Wednesday (16/8).

According to Solomon, the end of PKPU TOPS was in line with Totalindo’s expectations. This is reflected in the peace proposal submitted that satisfies the parties. “This means that creditors believe that the proposal offered by Totalindo can be implemented properly. After the verdict, debt payment obligations to creditors can be carried out properly in the future, “he said.
The Attorney for Debtors (TOPS), Doddy Boy Silalahi, said that the decision was Totalindo’s best effort.

“The debt payment plan with the new scheme will become an obligation for Totalindo to carry out for creditors,” he said. Meanwhile, a financial advisor from Triple B Advisory, Noprian Fadli, said he was grateful that the peace proposal submitted by TOPS could be approved by creditors. “I am optimistic that debt payment obligations can be resolved properly after this homologation decision,” he explained.

TOPS’s operational activities are ongoing. Currently, TOPS’s business focus is running a construction services business by actively participating in a number of new project tenders. Entering the third quarter of 2023, TOPS is working on 15 projects out of a total contract acquisition of IDR 1.021 trillion. One of the projects recently completed in the second quarter of 2023 is the MNC Ballroom, or Royal Glass House Building Project.

Source, Translated : 

PKPU PT Krakatau Engineering Ends With Homologation

The process of Suspension of Debt Payment Obligations that befell a subsidiary of PT Krakatau Steel (Persero) Tbk, PT Krakatau Engineering, ended with homologation (peace) at the Commercial Court at the Central Jakarta District Court.

The news of the receipt of the Composition Plan Proposal that was submitted by PT Krakatau Engineering to the creditors is, of course, a breath of fresh air for companies engaged in engineering services to continue their business with the hope of even better going forward.

“Prama Arta Rambe and Ongku Martua Siregar, as the Management Team of PT. Krakatau Engineering, reported that the number of creditors who are registered with PKPU PT. Krakatau Engineering was 165 creditors with a total bill of Rp. 2.190.735.231.703,63,” said the statement received by Infoka on Tuesday (14/3/2023).

Furthermore, the Management Team explained that the 165 Creditors consisted of 3 Separatist Creditors with a bill value of Rp. 443.272.198.65 and 162 Concurrent Creditors with a claim value of Rp. 1.747.463.033.315,98.

As information continued, PT Krakatau Engineering was officially declared PKPU since September 19, 2022 through Case Decision No. 190/Pdt.Sus-PKPU/2022. PN. Commerce. JKt. Pst. Commercial Court in Central Jakarta Court.

Then on Monday, March 6 2023, there was very good news for one of the subsidiaries of PT. Krakatau Steel (Persero) Tbk, considering that on that day a Peace Plan Discussion Meeting and Voting (Voting) were held with the final result being 100% Separatist Creditors and 97% Concurrent Creditors agreeing to the Peace Proposal from PT Krakatau Engineering.

The Assembly Deliberative Meeting which was held on Thursday, March 9 2023, at the Commercial Court at the Central Jakarta District Court, became the final round and officially decided that PKPU PT. Krakatau Engineering ended peacefully, after 6 months of this PKPU process.

Furthermore, Prama Artha Rambe and Ongku Martua Siregar, as the Management Team of PT. Krakatau Engineering also advised, hopefully through the end of the PKPU period, PT. This Krakatau Engineering, can be good momentum and can be accepted by the Creditors and Debtors themselves. In the future PT. Krakatau Engineering must be committed and consistent in carrying out all forms of its obligations as stated in the homologation (Peace). (red)

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