Adhi Karya Subsidiary Faces PKPU Over Unpaid Rp381 Million Debt

Jakarta - PT Adhi Commuter Properti Tbk (ADCP) is facing a lawsuit for the Suspension of Debt Payment Obligations (PKPU) filed by one of its contractors, PT Tiyang Tehnik Seisoku. The working relationship between the two parties was based on a Cooperation Agreement (Contract) Number 114-3/261/IX/2024 signed on 12 September 2024. Under this contract, ADCP is said to have an obligation to the applicant amounting to Rp381,726,000. However, management has stressed that the value of the claim is not material to the company’s financial condition and that the company continues to operate normally while pursuing an out-of-court settlement. “Legally, the PKPU application carries reputational and operational risk aspects, but financially it does not meet the bankruptcy threshold criteria,” management wrote, citing information disclosure to the Indonesia Stock Exchange (BEI). Management acknowledged that, although the company’s operations are still running, the company is currently facing significant challenges in the form of a slowing property market dynamic, low levels of receivables realisation, and cash flow fluctuations that have impacted the adjustment of priority scales in meeting payment obligations. The company also confirmed that the PKPU filing has not yet had a direct impact on the financing agreements held by the company, whether related to bonds, sukuk, or working capital credit facilities. According to ADCP, based on the provisions in these various financing instruments, a default status can only occur if the company has been officially declared to be in a PKPU condition based on a court ruling. The company admitted it faces constraints, including significant cash flow limitations as a result of declining property sales and slow receivables realisation, and continues to make maximum efforts to resolve its obligations as a form of good faith. “The company is currently seeking an out-of-court settlement with a focus on peace negotiations and payment rescheduling, while also preparing funds to achieve maximum results. In this case, the company will also request support from the parent company to settle obligations, the provisions of which will be regulated in the parent and subsidiary relationship mechanism,” management explained. The company also recognises that in conditions where cash flow has not fully recovered, the risk of new lawsuits cannot be completely eliminated. Therefore, the company’s main priority at present is to restore cash flow, resolve priority obligations in stages, and the company is very open to communication and coordination with creditors who have critical conditions, and the company always maintains open communication with all creditors to avoid further legal action from creditors. In addition, the company has also appointed legal counsel to prepare a defence and state objections to the PKPU application. According to the company, the application submitted by the applicant does not meet the requirements as stipulated in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations. “Every lawsuit received will be immediately responded to in accordance with applicable provisions, and a resolution will be sought through deliberation/mediation before entering the further evidentiary process,” it concluded.