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Bloomberg Published December 17, 2024 Reading time
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Distressed textile giant PT Pan Brothers is closing in on its debt restructuring after seven months of negotiation with creditors, according to people familiar with the matter, as it works to avoid becoming the second Indonesian clothesmaker to be declared bankrupt this year.
Creditors will vote Wednesday on the latest 8.6 trillion rupiah ($537 million) restructuring proposal by Pan Brothers, Bloomberg News reported earlier. It initially sought to take votes last month, but delayed the process after facing push-backs from some creditors including SC Lowy, as they demanded better terms, according to the people familiar who declined to be identified.
Key creditors including SC Lowy have given their verbal support for the latest plan, one of the people familiar said. If the votes pass on Wednesday, that could help Pan Brothers avert the fate of bankruptcy when the Indonesian government has vowed to save jobs in the struggling sector.
