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Most Waskita Karya bondholders approve restructuring plan
The company is seeking another meeting with a group of bondholders that has yet to get on board.
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A construction worker inspects a girder on Aug 8, 2016, at a PT Waskita Beton Precast plant in Palembang, South Sumatra. PT Waskita Beton Precast is a subsidiary of state-owned construction firm PT Waskita Karya. (JP/Donny Fernando)
H
olders of three corporate bonds from Waskita Karya have approved a restructuring proposal that gives the debt-ridden state-owned construction firm more time to repay.
In meetings on Wednesday and Thursday, they agreed to extend to the end of 2034 the repayment periods for the bonds, which were due in June, August and September last year.
Waskita Karya also claimed to have reached an agreement in principle with all creditors on the restructuring of its bank loans.
“This is part of the holistic restructuring process of Waskita Karya. The proposal is the best option for the company to fulfill our responsibilities to all creditors, from banks to bondholders and vendors,” Waskita Karya president director Muhammad Hanugroho said in a statement on Thursday.
However, one bondholder meeting failed to achieve the minimum quorum to approve the restructuring plan. During a meeting on Feb. 21, only 43 percent of the holders of Waskita Karya’s Bond III Part IV, issued in 2019, approved the scheme.
The firm vowed to organize another bondholder meeting to propose a different restructuring plan.
According to the firm, approval from bondholders is an important milestone for its financial recovery. The nods allow the company to optimize cash flow and create more sustainable operations.
