PT Modernland Realty Tbk

Project Overview

Ourt client was an ad-hoc committee of the Company’s global bondholders representing approximately 25% of the outstanding USD 390 million notes.

Challenges

• Prolonged weakness in the property market, compounded by COVID-19 disruptions, resulted in liquidity stress and bond payment defaults. As the Client’s liabilities consisted predominantly of offshore notes, the restructuring was implemented through a Singapore Scheme of Arrangement.
• Bondholders required enhanced transparency, asset visibility, and improved structural protections to support a consensual outcome.

Our Approach

• Conducted an independent assessment of the Company’s operational performance, financial projections, and refinancing proposals;
• Performed detailed asset and landbank mapping, including onsite evaluations, to assess realizable value and collateral potential; and
• Negotiated commercial trade-offs associated with the proposed extended maturities and reduced coupons in the form of an enhanced security package with significant collateral coverage and deleveraging commitments through asset sales.

Outcome