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.

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