Troubled Indonesian textile company Sritex has paused payments on its dollar loan, preparing for a debt restructuring. Sritex said it intends to maintain the pause in payments until it submits its restructuring plan to lenders. Sources say that the company expects to submit its plans by the week starting August 9. They also said that Sritex hopes lenders will not take legal action against the pause because it may encourage bondholders to ask the firm to accelerate payments on the dollar notes. Sritex had taken the loan in 2019 worth $350mn and maturing in 2022. Sritex said last month that a scheduled signing of an extension of the maturity on the facility had been delayed. Sritex has hired Helios Capital for restructuring and its bonds have been slammed after downgrades by Moody’s and Fitch.
Sritex’s 7.25% 2025s and 6.875% 2024s are currently trading at distressed levels of ~29.5.
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