Adhi Karya Subsidiary Faces PKPU Over Unpaid Rp381 Million Debt
PT Adhi Commuter Properti Tbk (ADCP) is facing a suspension of debt payment obligations (PKPU) lawsuit filed by one of its contractors, PT Tiyang Tehnik Seisoku.
The partnership between the two parties is based on Cooperation Agreement (Contract) Number 114-3/261/IX/2024, signed on 12 September 2024. Based on this work, ADCP is alleged to have an obligation to the petitioner amounting to Rp381,726,000.
However, management has emphasised that the value of this claim is immaterial to the company’s financial condition, and the firm continues to operate normally while pursuing settlement steps outside of court.
“Legally, the PKPU application carries reputational and operational risks, but financially, it does not meet the threshold for insolvency,” management wrote, quoting an information disclosure from the Indonesia Stock Exchange (BEI), reported on Tuesday.
Management admitted that while company operations remain ongoing, the company is currently facing significant challenges, including slowing dynamics in the property market, low accounts receivable collection rates, and cash flow fluctuations, which have necessitated adjustments to the scale of priorities in meeting payment obligations.
The company also emphasised that the PKPU filing has not yet had any direct impact on its existing financing agreements, whether related to bonds, sukuk, or working capital credit facilities. According to ADCP, under the provisions of these various financing instruments, a default status can only occur if the company is officially declared to be in a state of PKable (PKPU) based on a court decision.
The company admitted that it faces constraints, including significant cash flow limitations resulting from declining property sales and slow realisation of receivables, but is striving to resolve its obligations as a sign of good faith.
“The company is currently seeking an out-of-court settlement, focusing on peace negotiations and payment rescheduling, while simultaneously preparing funds to achieve maximum results. In this regard, the company will also seek support from its parent company to settle obligations, the terms of which will be regulated through the mechanism of the relationship between the Parent and Subsidiary,” management explained.
The company also recognises that as cash flow has not yet fully recovered, the risk of new lawsuits cannot be entirely eliminated. Therefore, the company’s primary priority is to restore cash flow and settle priority obligations gradually. The company remains open to communication and coordination with creditors in critical conditions and maintains open communication with all creditors to avoid further legal action.
Furthermore, the company has appointed legal counsel to prepare a defence and express objections to the PKPU application. According to the company, the application filed by the petitioner does not meet the requirements stipulated in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations.
“Every lawsuit received will be responded to immediately in accordance with applicable regulations, and efforts will be made to resolve it through deliberation/mediation before entering further evidentiary processes,” it concluded.