Sri Rejeki Isman Tbk (Sritex)

BREAKING: Singapore Court Grants 3-Month Moratorium to Sritex Subsidiaries Golden Legacy, Golden Mountain; Court Directs Golden Mountain Interco Claim to be Filed in PKPU; Claim to be Voted at Due-2024 Noteholders’ Direction

Fri 05/21/2021 04:14 AM
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The Singapore High Court today, May 21, granted a three-month extension to PT Sri Rejeki Isman Tbk’s (Sritex) Singapore subsidiary, Golden Legacy Pte Ltd and the latter’s wholly-owned Singapore subsidiary, Golden Mountain Textile and Trading Pte Ltd, but with some conditions, according to two sources with knowledge. Continue reading for our Asia Core Credit team's analysis of the Sritex subsidiaries and request a trial for access to reporting on hundreds of other performing, stressed and distressed credits in the region. 

At the hearing today, Justice Vinodh Coomaraswamy ordered that Golden Mountain’s inter-company claim against Sritex be allowed to be filed in the onshore in-court supervised restructuring (PKPU) proceedings and that the claim be voted at the direction of the holders of Sritex’s $150 million 6.875% due 2024 notes, the sources explained.

Sritex was represented by Rev Law LLC and an ad-hoc group of Sritex’s due 2024 notes and the $225 million 7.25% notes due 2025 noteholders was represented by Clifford Chance.

Clifford Chance declined to comment. Sritex and Rev Law LLC did not respond to requests for comment.

Sritex’s capital structure is as below.










































































































































































































































































































































































Sri Rejeki Isman Tbk (Sritex)

12/31/2020
EBITDA Multiple

(USD in Millions)
Amount
Price
Mkt. Val.
Maturity
Rate
Yield
Book
Market


HSBC Indonesia 1
42.8

42.8
Sep-28-2021


QNB Indonesia 2
35.4

35.4
Apr-01-2021


Bank Central Asia 3
7.9

7.9
May-09-2021


Bank Negara Indonesia 4
12.2

12.2
Sep-03-2021


MUFG 5
26.6

26.6
Jan-22-2022


DBS Indonesia 5
4.4

4.4
Apr-23-2021


Taipei Fubon 6
20.0

20.0
Apr-07-2021


Bank Muamalat 5
29.7

29.7
Aug-05-2021


Bank of China (HK) 6
15.0

15.0
Sep-30-2021


Bank Pembangunan DJBB 6
38.9

38.9
Oct-05-2021


Standard Chartered 7
26.2

26.2
Oct-31-2020


Bank Woori Saudara 6
5.0

5.0
Jul-28-2021


Bank DKI 6
10.6

10.6
Oct-21-2021


Bank Emirates NBD 4
2.6

2.6



Total Trade/ Working Capital Borrowings
277.3
277.3
1.2x
1.2x

Bank Central Asia 8
16.2

16.2
2023
4.750%

Bank Permata
2.1

2.1
Jul-11-2022
9.500%

Syndication (Citi Global, DBS, HSBCI) 9
350.0

350.0
Jan-02-2022
USD LIBOR + 2.700%

Total Long-term Bank Borrowings

368.3
368.3
2.7x
2.7x

Finance Lease 10
23.7

23.7



Total Leases
23.7
23.7
2.8x
2.8x

MTN $25mil 5.8% '20 11
25.0

25.0
May-18-2021
5.800%

$150mil Golden Legacy 6.875% '24 12
150.0

150.0
Mar-27-2024
6.875%

$225mil SRIL 7.25% '25 13
225.0

225.0
Jan-16-2025
7.250%

Total Notes and Bonds
400.0
400.0
4.4x
4.4x

Total Debt
1,069.3
1,069.3
4.4x
4.4x

Less: Cash and Equivalents
(187.6)
(187.6)

Net Debt
881.7
881.7
3.7x
3.7x

Plus: Market Capitalization
287.3
287.3

Enterprise Value
1,169.0
1,169.0
4.9x
4.9x

Operating Metrics

LTM Revenue
1,282.6

LTM Reorg EBITDA
241.0


Liquidity

Plus: Cash and Equivalents
187.6

Total Liquidity
187.6

Credit Metrics

Gross Leverage
4.4x

Net Leverage
3.7x


Notes:
Reorg EBITDA incl. PSAK 73 effects of ~$12.1mil in 2020
1. - At opcos' level, plus Golden Mountain, maturity estimated based on disclosure
2. Extension in progress
3. Opco Level
4. Golden Mountain level
5. Holdco, opco level
6. Holdco level
7. Holdco + opco level; automatically extended by bank
8. Rate: 4.5% - 5.0%, maturity: 2021 - 2023, Collateralised against PPE, working capital - D/E < 1.5x, EBITDA/ interest >2x, current ratio >1x
9. Rate: 1mL + 250-290bps, Consol. net borrowings/ tangible net worth <1.30x (steps down to 1.15x Jun'21); Consol. net borrowings/ EBITDA < 3.75x (steps downs to 3.6x in Jun'21)
10. For machine rental, PSAK 73 adoption
11. Current asset/ current debt >2x, EBITDA/ interest > 2.5x
12. FCCR > 2.5x
13. FCCR > 2.5x



-- Nidhi Pandurangi
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