Sritex Creditors Submit About $1.4 Billion in Outstanding Claims

(Bloomberg) -- Creditors of PT Sri Rejeki Isman, Indonesia’s biggest listed clothing firm, have submitted about 20 trillion rupiah ($1.4 billion) of outstanding claims as part of a debt-restructuring process.

The claims include about 700 billion rupiah submitted by secured creditors and around 19 trillion rupiah from unsecured creditors as of June 10, according to Alfin Sulaiman, a member of an administrator team appointed by Indonesia’s Semarang commercial court. Verification is ongoing and the final amount will be released soon, Sulaiman said on Friday.

The company, known as Sritex, was put under a debt suspension process last month by a court following a petition filed by business partner CV Prima Karya, who stated that the clothing maker owed 5.5 billion rupiah. It had paused payments on a dollar loan and was in the middle of preparing a restructuring proposal for lenders when Prima Karya filed the petition.

Sritex has also fallen into distress in credit markets, where its 2025 and 2024 notes are the worst-performing Indonesian corporate dollar securities this year.

Indonesian clothing firms’ exports declined 17% last year because of the pandemic, and the global resurgence of the Covid-19 virus threatens the industry’s recovery. PT Pan Brothers, Sritex’s rival and Indonesia’s second-biggest listed apparel company, is also facing a debt suspension petition submitted by PT Bank Maybank Indonesia at the Central Jakarta commercial court.

Click here to read about rising debt cases at Indonesia’s courts on pandemic

Joy Citradewi, head of corporate communications at Sritex, said on Friday that the company could not provide details on the creditors’ claims as it was still waiting for the administrators to complete verification.

Sritex has asked the Semarang court to extend the debt suspension process by 120 days, from an initial period of 45 days that will end on June 21, because it needs additional time to carry out a comprehensive review of the group’s business and operations, it said a filing. It expects to present final composition plan to creditors on Oct. 7 and to hold voting on Oct. 14.

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