SINGAPORE (Yosefardi) – Trikomsel Pte. Ltd. is now pursuing the restructuring of its SG$215 million debt. The debt consists of SG$115 million senior fixed rate notes (FRN) with annual coupon rate of 5.25% due this year, and SG$100 million senior fixed rate notes (FRN) with annual coupon rate of 7.875% due in 2017.
The company has held initial meetings with the steering committee of noteholders to discuss the Company’s financial performance and business plan, and are currently coordinating to integrate the noteholder steering committee discussions with the wider group of bank creditors.
Progress on the restructuring as a whole has been affected by the launch of formal proceedings against the Company in Indonesia. In the short term, these proceedings place the Company under the supervision of court appointed administrators, which will significantly curtail the Company’s management discretion.
However, these proceedings also provide an opportunity for the Company to conduct a restructuring under the supervision and with the legal force of an Indonesian court order if supported by the requisite majority of creditors.
As previously announced by the Company, on 4 January 2016, an insolvency related petition was granted by the Indonesian court in respect of the Company. The petition granted is called ‘PKPU’ referring to the Indonesian initials of a proceeding roughly translated as ‘suspension of payments’ obligations.
The PKPU process does, however, come with potentially significant consequences. It is initially granted only for a limited period of 45 days. If it is not possible to agree a plan with the above majority of creditors within this time frame, the creditors must vote to extend the period, up to a maximum total period of 270 days. If the period elapses (or is not extended) then the Company would automatically be declared bankrupt.