JAKARTA (TheInsiderStories) – Semarang-based textile producer, Duniatex Group finally escaped the threat of bankruptcy after the suspension of the debt payment obligation on June 26, said the company today (07/13). As reported, since last year the group have failed to pay the debts and one of its obligor filed a bankruptcy to Indonesian court
The companies involved in the debt restructuring are PT Delta Merlin Dunia Textile, PT Delta Dunia Tekstil, PT Delta Merlin Clothing Textile, PT Delta Dunia Clothing Textile, PT Dunia Setia Clothing Original Textile, and PT Damai Trading and Industry Company.
It said, the Semarang Commercial Court had ratified a peace agreement between Duniatex and its creditors. That way, from that date, the homologation or peace agreement agreed upon by the creditors comes into force and the company is obliged to carry out.
The spokeswoman, Detri Hakim, said as many as 55 creditors with guarantees representing bills valued at Rp19.15 trillion (US$1.33 billion) and 16 unsecured creditors representing bills of Rp247.47 billion gave approval for the peace plan. The total bills verified by the management team in amounted to Rp19.86 trillion from 58 separatist creditors and Rp247.56 billion from 17 concurrent creditors.
This failed payment for Duniatex was first revealed in the mass media in September last year. Simultaneously, Fitch Ratings also downgraded the debt rating of PT Delta Merlin Dunia Textile, a subsidiary, to ‘CC’ from before ‘CCC’.
At that time, the textile company asked the Singapore stock exchange to temporarily suspend the trading of $300 million in bonds. The reason is, Delta Merlin Dunia Textile was submitted to undergo a debt cancellation case by its obligors.
PT Shine Golden Bridge has filed a bankruptcy case in Semarang, Central Java. The Duniatex‘ subsidiary issues senior unsecured bonds which will mature in 2024 with an interest of 8.62 percent. In the third quarter of 2019, the company had an obligation to pay interest on bonds and bank loans of around Rp450 billion, but was unable to pay this obligation.
This group consists of 18 limited companies, spread over several locations in more than 150 hectares of land and was established in 1974 under the name CV. DUNIATEX in Surakarta. The company operates mainly in the finishing industry in 1988.
In 1992, Duniatex took over PT Damaitex located in Semarang which operates in the finishing industry. Subsequently, Duniatex expanded its weaving operations in 1998 by establishing Dunia Sandang Abadi and Delta Merlin Dunia Tekstil.
Along with the increasing demand for fabric products, Duniatex expanded its wings and built Delta Merlin Dunia Tekstil, now in eight different locations in Indonesia.
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