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MLDN will restructure its shelf registration bonds

23 July 2020 07:08

JAKARTA. The meeting of bondholders of PT Modernland Realty Tbk (MDLN) has resulted in an agreement to restructure the company's Shelf Registration Bonds I phase I/2015 Series-B with a principal value of Rp 150 billion.

The bonds, which were originally mature on 7 July 2020, were extended to 7 July 2021. The bondholders' meeting also agreed to reduce interest to 10% per year. 

Due to its failure to repay maturing bonds, MDLN was also fined. Hartati Handayani, Head of the Custodian Services Division at the Indonesian Central Securities Depository (KSEI), said the fine had been agreed upon in the bondholders meeting.

The rating agency Fitch Ratings has slightly upgraded MDLN's rating from "RD" to "CC". Despite this, the rating still reflects poor liquidity and the possibility of default on debt in the near future amidst the company's weakening performance. (KR/AR)

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