Project Housing

Project Overview

Our Client is a property subsidiary of an SOE.

Challenges

• On June 2023, the Central Jakarta District Court granted a PKPU petition filed one of the Client's customers. Prior to the PKPU filing, the Client struggled to finish construction of some of its projects, due to a lower than expected take-up rate and hence not enough funds to complete asset construction.
• The Client also had several problematic assets with unique problems (dispute with third parties on ownership of land, illegal residents in the area, disputes with joint property developer) which lead to the Client not being able to monetize its assets.

Our Approach

• Conducted an extensive analysis and multiple discussions with the Client regarding its operational and financial performance, plans, and strategy going forward post-PKPU. Subsequently, we constructed financial projections to provide creditors the information on the Client’s estimated financial performance and debt repayment capability
• We actively lead and arrange the negotiations with key creditors and their advisors to agree on a commercially viable restructuring scheme.
• We assisted the Client in selecting a KJPP, managing data to be provided to the KJPP and monitor the KJPP's work on the revaluation of APP's assets.
• Conducted townhalls with the Client 's customers to socialize terms of the Composition Plan for customers and gain support in from these customers.

Outcome