Indonesian textile company Sritex, faces IDR 26.02tn ($1.8bn) in creditor claims, an increase from IDR 20tn ($1.38bn) reported in June. The company is undergoing a debt restructuring after being put under a debt suspension process in May when business partner CV Prima Karya claimed that Sritex owes it IDR 5.5bn ($380k). A couple of weeks ago, Golden Legacy’s bondholders won an approval to vote on Sritex’s restructuring with its $150mn bonds due 2024 guaranteed by Sritex. Sritex was downgraded by Fitch to RD from C in May after missing its interest payment on a $350mn syndicated loan.
Sritex’s bonds trade at distressed levels with its 7.25% 2025s at 20 cents on the dollar.
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