PT Modernland Realty Tbk
Transaction Value
USD 390
million
Service Line
Creditor Support & Advisory (Singapore Scheme of Arrangement)
Project Overview
We acted as financial advisor to an ad-hoc committee of the Company’s global bondholders representing approximately 25% of the outstanding USD 390 million notes.
Challenges
- Prolonged weakness in the property market, compounded by COVID-19 disruptions, resulted in liquidity stress and bond payment defaults. As the liabilities was predominantly offshore notes, the restructuring was implemented through a Singapore Scheme of Arrangement.
- Bondholders required enhanced transparency, asset visibility, and improved structural protections to support a consensual outcome.
Our Approach
- Conducted an independent assessment of the company’s operational performance, financial projections, and refinancing proposals.
- Performed detailed asset and landbank mapping, including onsite evaluations, to assess realizable value and collateral potential
- Negotiated commercial trade-offs to the proposed extended maturities and reduced coupons, in the form of enhanced security package with significant collateral coverage, and deleveraging commitment through asset sales.
Outcome
- The restructuring was successfully completed, with the Scheme approved by over 97% of participating creditors, and the offshore notes was supported by enhanced bond security with 60% collateral coverage ratio and asset sale commitments of up to USD 200 million.
Interested in Similar Services?
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