Duniatex Group

Project Overview

Our Client is an integrated Indonesian textile group with six textile manufacturing subsidiaries and one property business unit, operating across spinning, weaving, finishing, and garment production.

Challenges

• The Group faced severe financial distress driven by foreign exchange contract losses, the dumping of Chinese textile products caused by the US–China trade war, and operational and structural inefficiencies.
• The restructuring was highly complex due to: A broad and diverse creditor base including SOE banks, domestic private banks, special situations funds, and offshore noteholders
• Extensive cross-guarantees among group entities; personal guarantees provided by the sponsor
• The need to coordinate domestic PKPU proceedings with parallel cross-border processes.

Our Approach

• AJCapital acted as the financial advisor representing the Client.
• Conducted comprehensive operational and financial due diligence and developed entity-level financial projections reflecting differing business models and recovery capacities.
• Structured a coordinated, group-wide restructuring framework addressing cross-guarantees and intercompany exposures.
• Led negotiations across a highly fragmented domestic and international creditor base, under an integrated legal proceedings of domestic PKPU and offshore legal recognition to ensure global enforceability and creditor alignment.
• Developed and negotiated the commercial terms of the Composition Plan within the PKPU framework.
• Represented the Group in U.S. Chapter 15 proceedings and Singapore moratorium processes, including preparation of affidavits supporting recognition of Indonesia as the Center of Main Interests (COMI).

Outcome