Indonesia’s Waskita, Wijaya Karya make headway in restructuring talks, ET RealEstate
JAKARTA: Indonesian state-controlled construction firm Waskita Karya plans to finish negotiations with banks to restructure its loans in April, and talks to deal with its outstanding bonds are underway, its chief executive said on Tuesday.
Waskita CEO Muhammad Hanugroho told a parliamentary hearing, his company’s total debt as of the end of 2023 was 41.2 trillion rupiah ($2.62 billion), 26.3 trillion of which were bank loans.
Waskita has put forward a restructuring proposal to the banks last month and it hopes to sign a master restructuring agreement in April, the CEO said.
Investors in three out of the four series of bonds Waskita is trying to renegotiate have agreed on a restructuring scheme, Hanugroho said. Waskita is to arrange a meeting with the last group of bondholders on March 22, he said.
Meanwhile, another debt-saddled state-controlled builder Wijaya Karya (Wika) has reached an agreement to restructure 20.7 trillion rupiah of bank loans in January, CEO Agung Budi Waskito said, without providing details.
Trading in Waskita and Wika’s securities has been suspended by the stock exchange since last year after both companies defaulted on their bonds. The companies’ finances were hit hard by the impact of the COVID-19 pandemic and after taking on a lot of debt to fund a government-led infrastructure push.
The government plans to provide Wika with a 6 trillion rupiah capital injection by subscribing to the company’s planned rights issue this quarter to help it complete dozens of strategic projects, Agung said.
Wika will also seek to sell shares worth 3.2 trillion rupiah to the public during the rights issue, taking the total target amount to be raised to 9.2 trillion rupiah, he said.
