Indonesian textile company Duniatex group has appointed Aji Wijaya & Co. as their onshore Indonesian legal counsel, said a source with direct knowledge of the matter and a source familiar with the matter.
Duniatex has appointed AJCapital Advisory as financial advisor to advise on the company’s cash flow, liquidity and capital structure for potential restructuring,
as reported.
Duniatex is also expected to provide an update to creditors next week, said the same source. The company provided an update last week stating that it has requested PT Delta Merlin Dunia Textile’s (DMDT) lenders to delay principal payment on its syndicated loan, at the same time as providing details on the use of proceeds of its $300 million 8.625% due March 2024 bonds,
as reported.
Six of DMDT’s bondholders, which represent more than 25% of the bonds, have formed an ad hoc committee and formally appointed Mehigan LLP as their legal advisor, said the first source who had been briefed on the matter. The bondholders include Allianz SE, Athos Capital, SeaTown International and ST Asset Management, said the source. Two other names rumoured to have joined the group are Amagis Capital and Income Partners Asset Management, said the source. A number of other bondholders are still considering joining the ad hoc committee, the source added.
SeaTown and ST Asset Management are units of Singapore sovereign wealth fund Temasek Holdings.
According to one of the sources above, Mandiri Sekuritas has been appointed as financial advisor to the Indonesian state-owned bank creditors of Duniatex.
Duniatex’s other lenders are in discussions with Borelli Walsh and Deloitte for a financial advisor role, as
reported.
Duniatex is currently still in talks for an international legal counsel with a Singapore presence, said the source with direct knowledge. Law firms that are being considered include DLA Piper, Gibson Dunn, K&L Gates and Kirkland & Ellis, said the source.
See Reorg’s coverage on DMDT
HERE.