Analysis: Offshore Value in Sritex SG Subsidiaries Potentially Valuable to Secondary Investors

The recent filing of “defensive” applications by PT Sri Rejeki Isman Tbk (Sritex) subsidiaries, Golden Legacy Pte Ltd. and Golden Mountain Textile and Trading Pte Ltd., in the Singapore court for a moratorium under section 64 of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA) comes as the company faces increasing difficulties with its creditors in Indonesia with one of its (potentially friendly) trade creditors having filed a petition to initiate PKPU against Sritex. If the full debtor-in-possession moratorium is granted by the Singapore courts, this would prevent noteholders under Sritex’s $150 million 6.875% due 2024 notes issued by Golden Legacy from taking enforcement action under the notes — which in turn would prevent noteholders from being able to take recovery action around potential offshore value. Read more