JAKARTA. The price of PT Modernland Realty Tbk (MDLN) shares fell by 11.29% in the last five trading days, because the company failed to pay the principal amount of its bonds, which reached Rp150 billion with a fixed interest rate of 12.5% per year offered in 2015.
According to idnfinancials.com data, the price of MDLN shares was recorded at Rp 55 per share on 7 July 2020. At the end of June 2020, the price was recorded at Rp 62 per share.
The Indonesia Stock Exchange (IDX) has also suspended MDLN shares in all markets. In its official statement, the IDX also said the suspension was done because the company received a special monitoring certificate from the Indonesian Rating Agency (Pefindo) since 24 June 2020.
Pefindo downgraded the rating of MDLN's bonds from "idBBB-" to "idCCC". Then the company's rating was downgraded to "idCCC" CreditWatch with Negative Implications.
"The rating will become "D" or default if MDLN fails to meet its financial obligations in full and on time," explained Pefindo in his letter to MDLN.
Meanwhile, PT Bank Permata Tbk (BNLI), as trustee of MDLN's bonds, has invited bondholders to discuss the proposed restructuring. The bondholders' meeting will be held Thursday on (9/7) today. (KR/AR)