Sritex Appoints Helios Capital for Debt Restructuring

Indonesia’s biggest listed clothing firm Sri Rejeki Isman has appointed Helios Capital and Assegaf Hamzah & Partners to represent the company in its debt restructuring process, according to a statement on Saturday.

The company, known as Sritex, has been trying to extend a dollar loan’s maturity by two years to January 2024. The loan was announced in 2019 and had a deal size of $350 million, according to data compiled by Bloomberg.

Sritex said in a March 22 statement that it was in a “vulnerable position” after the mandated lead arrangers and bookrunners decided to postpone the loan extension signing, scheduled for March 19, due to unprecedented events. The delay led Fitch Ratings to cut the company to B- from BB-, citing increased liquidity and refinancing risks.

The company had revenue growth of 8.52% last year during the pandemic, according to the Saturday statement. Despite the increase, Sritex said several of its bank facilities were sizeably reduced due to the financial sector’s growing concerns toward the textile industry.

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