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IDX suspends Wijaya Karya shares for missed principal deadline
The bourse has suspended Wijaya Karya shares after the state-owned construction firm missed a Monday deadline for a sukuk principal repayment, citing cash flow problems.
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Workers inspect a North Jakarta seawall project managed by PT WIKA Beton, a subsidiary of state-owned construction firm PT Wijaya Karya (WIKA), in May 2017. (JP/Dana Wardhana)
T
he Indonesia Stock Exchange (IDX) suspended trading in PT Wijaya Karya (WIKA) stock after the state-owned construction firm missed a deadline on Monday to make a principal repayment on its sukuk, or sharia bond.
“The postponement indicates a going concern in the company’s business,” the bourse said in a statement on Monday after WIKA was suspended that morning until further notice.
In 2020, Wijaya Karya issued Rp 500 billion in sustainability sukuk divided into three series of different tenures. The three-year Series A sukuk valued at Rp 184 billion matured on Monday.
The Rp 159 billion Series B sukuk and the Rp 157 billion Series C sukuk mature in 2025 and 2027, respectively.
The state-owned enterprise (SOE) had announced on Thursday it would postpone repaying the principal of the Series A sukuk, citing “limitations” related to its “projected cash flow at the end of 2023” and a “need to prioritize the use of cash for working capital as part of the company's financial restructuring measures”.
At meetings with its bondholders in October and November, the company proposed postponing the Series A sukuk principal repayments by two years while offering a call option and the continuance of coupon payments. However, the investors rejected the proposal.
The proposed postponement “represents the implementation of equal treatment for all creditors, including those who have agreed to postponing repayment of the Series A sukuk principal,” Wijaya Karya said in a statement on Monday.
