Helping the Company Thru a Thin Thread

Background
In Indonesia, there are 3 major glass manufacturer and our client is one of those 3 major players with more than 35 years of experience in the industry. The Company was struggling to fulfil creditors’ expectations, due to the failure of glass factory furnace which already enter the overhaul time. Hence, the Company faced bankruptcy lawsuit (PKPU), wherein there are 3 different interests of each family members/ owners. Our Firm was appointed by the Company as their advisor in advising the Company for the PKPU process. Our work include advising the best restructuring plan, become liaison between the Company and its creditors, bridge and negotiate acceptable restructuring plan and to control all conditions & unpredictable situations.

About the Glass Manufactured Business
The glass manufactured business heavily rely on the installed machine and capacity also the type of the machine. The cycle of the machine once it has been lit on, it would need to operate 24 hours without stopping for the entire 10 years, before it scheduled for overhaul service which is last for 6 months, and running again for another 10 years. After that it would need big overhaul repair which to replace the entire machine.

The Solution
By Considering the issues and dynamics through a mechanism in PKPU lawsuit, We empower its knowledge to solve the Company’s issue through business model analysis, restore the creditors’ trust to the Company, and succeed in convinc ing the creditors that the business is still sustainable as the local glass Company is capital intensive, which is why the player is few in the industry, thus, the Company hold the huge potential if the business is restructured. Another challenge was accommodating the three owners each expectation to reach an agreement in the process of the restructuring We finally obtained the Court approval on the Restructuring Scheme prepared and submitted. Nevertheless, We proofed quality showed not only found the new investor to fund the Company, but also matched with the Company’s current condition, thus increase the Company’s value to about USD 70 million regardless that it was a distress business .



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