Case Study
Duniatex Group
June 2020- Type of Case :
- Debt Restructurings and Turnaround Management (PKPU)
- Title :
- Textile
- Status :
- Closed June 2020
- Value :
- USD 22 trillion
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.
PROJECT ISSUES
- 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.
WHAT WE DID
- 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).
PROJECT OUTCOME
- The restructuring was successfully completed, with the PKPU Composition Plan approved by 99.96% of unsecured creditors and 96.45% of secured creditors.
- Cross-border recognition from Singapore and US successfully obtained.
