Case Study
PT Sentul City Tbk
February 2021- Type of Case :
- Debt Restructurings and Turnaround Management (PKPU)
- Title :
- Property Development
- Status :
- Closed February 2021
- Value :
- USD 770 million
PROJECT OVERVIEW
- Our Client is a publicly listed Indonesian property developer with a diversified residential, commercial, retail, and mixed-use portfolio.
PROJECT ISSUES
- A prolonged real estate slowdown, compounded by COVID-19, resulted in declining sales, negative operating cash flow, and liquidity constraints. Main source of cash is from its residential sales, however ready to sale inventory was relatively low compared to debt obligations with significant working capital financing required to complete ongoing projects. Several ongoing projects were overdue and the Client faced multiple PKPU and bankruptcy petitions from vendors and customers.
WHAT WE DID
- AJCapital acted as the financial advisor representing the Client.
- Assisted in customer and creditors outreach to secure broad participation in the process.
- Served as central coordination point, coordinating closely with management, legal counsel, administrators, and creditor groups throughout the PKPU process.
- Developed forward-looking cash flow to identify a sustainable repayment structure.
- Designed a comprehensive liability management strategy, including deleveraging through asset divestments, re-profiling bank debt maturities and commercial terms, capitalization of raw landbank, and deferral of selected project completion and customer settlement obligations to restore liquidity and improve balance sheet bankability.
- Led creditor negotiations and structured the commercial terms of the Composition Plan.
PROJECT OUTCOME
- The PKPU Composition Plan was successfully approved by 100% of secured creditors and 97.21% of unsecured creditors.
