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Textile firm Sritex declared bankrupt
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Manufacturing operations are pictured in an undated photograph at a Sritex factory in Surakarta, Central Java. (JP/Nani Afrida)
Publicly listed textile company PT Sri Rejeki Isman (Sritex) has been declared bankrupt.
The Semarang Commercial Court in Central Java ruling issued on Wednesday concludes a case filed by PT Indo Bharta Rayo after Sritex and its subsidiaries, including PT Sinar Pantja Djaja, PT Bitratex Industries and PT Primayudha Mandirijaya, failed to meet their payment obligations.
The hearing presided over by Chief Judge Moch. Ansor declared the company bankrupt after granting a petition from one of Sritex’s creditors to annul a previously agreed suspension of debt payment obligations (PKPU).
“The court has granted the petition, canceling the PKPU agreement established in January 2022,” court spokesman Haruno Patriadi was quoted by news agency Antara as saying on Wednesday.
Haruno emphasized that the ruling comes after Sritex was found to have defaulted on its obligations, resulting in the declaration of bankruptcy.
In the past, Sritex finance director Welly Salam dismissed bankruptcy rumors. “The company is still operational, and there is no bankruptcy ruling from the court,” he said in a statement to the Indonesia Stock Exchange (IDX) on June 22.
Welly attributed Sritex's financial downturn to global challenges, including the COVID-19 pandemic, intense competition in the global textile industry and reduced exports to Europe and the United States.
