Debt restructuring: WSKT avoids delisting trap
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Restrukturisasi utang: WSKT hindari jerat delisting
28 November 2024
By Dionisio Damara Tonce
Bisnis, Jakarta – The management of PT Waskita Karya (Persero) Tbk (WSKT) is working to lift its share suspension in conjunction with its ongoing debt restructuring efforts.
The Indonesia Stock Exchange (IDX) has suspended the trade of WSKT’s shares since 8 May 2023. Consequently, this construction state-owned enterprise (SOE) issuer is included in the list of 53 issuers that have been suspended by the IDX for more than six months as of June 2024.
The suspension, which has been ongoing for more than a year, puts WSKT’s shares at risk of being delisted. According to IDX regulations, one condition for delisting is if an issuer’s shares have been suspended for at least two years. Consequently, WSKT’s shares face the risk of being delisted as early as May 2025.
Waskita Karya Finance Director Wiwi Suprihatno stated that the company is making efforts to lift its share suspension before reaching the delisting deadline.
The management's effort will focus on obtaining approval to restructure Waskita Karya Continuous Bond III Phase IV Year 2019 Series B, valued at Rp1.36 trillion. This bond is the only non-guaranteed bond that has not yet been restructured by Waskita.
"We are still working to establish communication with the bondholders. Hopefully, at the next general meeting of bondholders, we can obtain approval before the potential delisting of Waskita’s shares," he said at a public expose in Jakarta on Tuesday (26/11).
Waskita Karya will hold a general meeting of bondholders for the Waskita Karya Continuous Bond III Phase IV Year 2019 Series B on 12 December 2024.
Waskita Karya President Director Muhammad Hanugroho added that, up to now, the restructuring approval has been hindered by the need for approval from the largest bondholder in the series.
"In terms of the minority, most have approved the restructuring proposal. So, we hope that the largest bondholder will approve this matter," Hanugroho, who is familiarly known as Oho, stated.
Waskita last held a general meeting of bondholders for the Waskita Karya Continuous Bond III Phase IV Year 2019 in Jakarta on 4 October 2024.
