Bondholders Reject All Restructuring Proposals from Adhi Karya (ADHI)

PT Adhi Karya (Persero) Tbk (ADHI) has announced the results of the Bondholders’ General Meeting (RUPO) for the Adhi Karya Continuous Bonds Series III Phase III 2022.

The meeting addressed three main agenda items: first, approval to change the maturity date of the bonds; second, approval to change the bond’s interest rate; and third, approval to waive the breach arising from the failure to pay the bond’s 17th interest instalment.

In the vote, bondholders unanimously rejected the restructuring proposals. On the first agenda item regarding the change of maturity, 99.57% of votes were cast against, with only 0.43% in favour. On the second agenda item concerning the interest rate change, the rejection was even higher at 99.48% of votes, versus 0.52% in favour.

As for the third agenda item, the request to waive the breach over the default on the 17th interest payment, 94.73% of votes were cast against, while only 5.27% approved the proposal. Consequently, bondholders also refused to forgive ADHI’s failure to meet its obligation to pay the bond’s 17th interest instalment.

With all restructuring proposals rejected, ADHI now faces default status on the 17th interest obligation of the Continuous Bonds Series III Phase III 2022, without a waiver from bondholders and without any change to the maturity date or interest rate as proposed by the company.