Indonesian textile and garment producer Sri Rejeki Isman (Sritex) has hired Helios Capital and Assegaf Hamzah & Partners to facilitate its debt restructuring. The clothing firm has been struggling with its debt and its rating downgraded to B- from BB- by Fitch recently on March 25. The rating actions came on the back of increased liquidity risks brought by delays in its loan extension process after its proposed request for a two-year extension on its $350mn syndicated loan due January 2022 was not reached even after the extended deadline of March 19. Moody’s had also downgraded the company to B3 from B1 on March 23 due to the failed negotiations, post which the company’s bonds have tumbled 40%. Sritex’s debt includes a syndicated loan of $350mn due January 2022 and medium term notes worth $25mn payable in 2Q2021. The company was also forced to scrap a planned new dollar bond in the second week of January after regional peer Pan Brothers faced a series of credit rating downgrades.

Sritex’s 6.875% 2024s issued by Golden Legacy Pte. Ltd were flat and its 7.25% 2025s were down 1.5 points to trade at distressed levels of 34.51 and 34.75 respectively.

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