JAKARTA – The management of PT Sri Rejeki Isman Tbk (SRIL), a garments and textile company, has sent a letter to the Facility Agent (FA) regarding the due debt interest payment of USD 350 million syndicated loans. Allan Moran Severino, the SRIL Financial Director, relayed the news in the information disclosure, Thursday (6/5).
According to Severino, the letter contains the willingness statement to pay the debt interest due April 24, 2021, under the requirement that it needs to wait for FA’s confirmation. “Until today, the company has not yet received the said confirmation,” Severino claimed as quoted from the information disclosure.
Severino also stated that the declining rating would adversely affect the company by reducing the possibility of obtaining bank and financial market facilities. “There could be a demand for a more immediate payment,” Severino added.
Fitch Ratings Indonesia has downgraded its long-term national rating from C (idn) to RD (idn) due to its failure to pay the due interest of USD 850 thousand from the syndicated loans of USD 350 million. The rating demotion occurred following the spent five-working-days recovery period set for the due debt interest payment.
Fitch Ratings announced that the company had been indicated of failing to pay bonds, loans, or other obligations but not yet filing a bankruptcy status, administration, receivership, or formal liquidation of the company. (LK/ZH)