Project Petrochemical

Project Overview

Our Client is a major Indonesian petrochemical producer with a complex shareholder structure involving state-owned enterprises, strategic investors, and private stakeholders.

Challenges

• Operational disruptions and external shocks severely impacted the Client’s ability to service its debt obligations, leading creditors to file a PKPU petition with the Indonesian Commercial Court.
• The Client’s creditor base was highly diverse, comprising state-owned enterprises, distressed debt funds, hedge funds, oil traders, and contractors.
• At the time of restructuring, the Client was under the operational control of Pertamina alongside PT Perusahaan Pengelola Aset (PPA) as the majority shareholder. The Client faced an immediate liquidity crisis and a multi-layered debt structure that required a comprehensive restructuring solution to avoid liquidation.

Our Approach

• AJCapital acted as the financial advisor representing the Client.
• Prepared financial forecasts to assess the Client’s critical and urgent cash needs and its working capital and capex requirements, and incorporated the following into the proposed Composition Plan: (1) short-term liquidity through bridging loans and/or tolling arrangements; and (2) priority financing for working capital and capex with priority security rights;
• Defused the high tensions that had built among the creditors by initiating, organizing, and moderating multiparty discussions;
• Represented the Client in negotiations with key creditors to secure their votes in the PKPU process and agree on a commercially viable structuring scheme; and
• Worked side by side with the Client’s appointed legal counsel to manage the Client through the PKPU process successfully.

Outcome