Project Housing

Project Overview

Our Client is a property subsidiary of an SOE. In June 2023, the Central Jakarta District Court granted a PKPU petition filed by one of the Client's customers. Prior to the PKPU filing, the Client struggled to finish construction of some of its projects, due to a lower-than-expected take-up rate and insufficient funds.

Challenges

• The Client had several problematic assets (disputes with third parties over land ownership, illegal occupants, and disputes with joint development partners) which prevented any form of monetization.

Our Approach

• Conducted extensive analysis and discussions with the Client regarding its operational and financial performance, plans, and strategy following the PKPU;
• Constructed financial projections to provide creditors with information on the Client’s estimated financial performance and debt repayment capability;
• Led and managed the negotiations with key creditors and their advisors to achieve a commercially viable restructuring scheme;
• Assisted the Client in selecting a KJPP, managing data to be provided to the KJPP and monitoring the KJPP's work on the revaluation of its assets; and
• Conducted town halls with the Client's customers to communicate and explain the terms of the Composition Plan and gain customer support.

Outcome