PT Sentul City Tbk

Project Overview

Our Client is a publicly listed Indonesian property developer with a diversified residential, commercial, retail, and mixed-use portfolio.

Challenges

• A prolonged real estate slowdown, compounded by COVID-19, resulted in declining sales, negative operating cash flow, and liquidity constraints. Its main source of cash was residential sales. However, ready-to-sell inventory was relatively low compared with debt obligations, with significant working capital financing required to complete ongoing projects. Several ongoing projects were overdue, and the Client faced multiple PKPU and bankruptcy petitions from vendors and customers.

Our Approach

• AJCapital acted as the financial advisor representing the Client.
• Assisted with customer and creditor outreach to secure broad participation in the process;
• Served as the central coordination point, coordinating closely with management, legal counsel, administrators, and creditor groups throughout the PKPU process;
• Developed forward-looking cash flow projections to identify a sustainable repayment structure;
• Designed a comprehensive liability management strategy, including deleveraging through asset divestments, re-profiling bank debt maturities and commercial terms, capitalization of raw landbank, and deferral of selected project completion and customer settlement obligations to restore liquidity and improve balance sheet bankability; and
• Led creditor negotiations and structured the commercial terms of the Composition Plan.

Outcome