The developer, PT Pakuwon Jati Tbk (IDX: PWON), through its subsidiary, purchased three property assets from Duniatex Group with total costs Rp1.36 trillion (US$96.45 million) - Photo by IHGMA Office

JAKARTA (TheInsiderStories) – The developer, PT Pakuwon Jati Tbk (IDX: PWON), through its subsidiary, PT Pakuwon Permai, purchased three property assets owned by Duniatex Group with total costs Rp1.36 trillion (US$96.45 million). The assets consisting of shopping center (Hartono Mall Yogyakarta) also Hotel Marriott Yogyakarta and Hartono Solo Baru in Central Java.

This was disclosed by the director, Minarto Basuki in the disclosure of information to the Indonesia Stock Exchange, on Monday (11/30). The company owned 67.13 percent of Pakuwon Permai.

He explained, the three assets were owned by PT Delta Merlin Dunia Properti as the building owner and Sumitro as the land owner under Duniatex Group. The acquisition was part of the company’ business expansion outside Surabaya in East Java and Jakarta, he adds.

So far, the issuer has several investment properties like Tunjungan Plaza, Pakuwon City Mall, Gandaria City Mall, Kota Kasablanka Mall, Pakuwon Mall. Royal Plaza, Blok M Plaza, Ascott Waterplace Surabaya, and Somerset Berlian serviced apartments.

In the middle of last year, Duniatex was busy to tackle the bankruptcy caused failed to pay their obligation to the bondholders. In August, the global rating agency, Fitch Ratings, lowered the debt rating of PT Delta Merlin Dunia Textile, a subsidiary of the the Group, to ‘CC’ from previously ‘CCC’.

In July 2020, the Semarang-based textile producer, finally escaped from the threat of bankruptcy after the suspension of the debt payment obligation on June 26. 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 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.

US$1: Rp14,100

Written by Editorial Staff, Email: theinsiderstories@gmail.com