Maybank Seeks Pan Brothers’ Debt Payment Delay in Jakarta Court

PT Pan Brothers said a local unit of Malayan Banking Bhd. has sought a debt payment delay against it in a Jakarta court, potentially complicating the Indonesian clothing company’s loan restructuring effort.

PT Bank Maybank Indonesia made the application to the Central Jakarta court, Pan Brothers said in a Friday filing to the stock exchange. Maybank accounts for less than 4.5% of the company’s syndicated and bilateral loans.

The Indonesian garment producer has struggled with disruptions to the supply chain and textile demand amid the pandemic. Pan Brothers seeks to keep making interest payments and negotiating with creditors to seek consensual debt restructuring, it said in the statement.

Maybank made the legal move because Pan Brothers has delayed its loan obligations since last year and there hasn’t been any signs of a real and concrete resolution, spokesman Tommy Hersyaputera said in a statement on Saturday.

“We hope with this debt payment delay that the borrower will be committed to resolving its obligations,” he added.

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