Indonesian textile company Sritex applied for a moratorium in Singapore’s high court on April 21 so that it could continue negotiations with banks. The application for moratorium comes after an onshore creditor filed a petition to begin restructuring of the company. Sritex is also in discussion with lenders to extend the maturity date on a $350mn syndicated loan due January 2022. Moody’s notes that a missed principal or interest payment on their bank loans would be considered a default under their dollar bonds due 2024 and 2025 and could lead to an acceleration of payments. Sritex recently said they would pause dollar loan payments, preparing for debt restructuring.
Sritex’s dollar bonds were higher with its 7.25% 2025s and 6.875% 2024s up 0.75 and 0.24 to 28.25 and 27.75.