Creditors Approve Debt Restructuring

Shareholders of PT Modernland Realty Tbk. (MDLN) have approved a plan to transfer, convey and/or pledge company assets worth more than 50 per cent of its net assets. The approval forms part of a series of corporate actions amid the company’s efforts to settle its obligations under Guaranteed Senior Notes maturing on 30 April 2027.

The decision was reached at the Second Extraordinary General Meeting of Shareholders (RUPSLB II), held in Jakarta on Monday (14/9).

Dharma Mitra, President Commissioner of Modernland Realty, said the company had sought shareholder approval to transfer and/or pledge assets valued at more than 50 per cent of the company’s total net assets.

“All such transactions will be carried out in accordance with the prevailing regulations,” Dharma said in an official statement.

Modernland Realty Director Fetrizal Bobby Heryunda said the company is currently pursuing a liability management strategy to settle obligations related to the Guaranteed Senior Notes maturing on 30 April 2027, known as the 2027 Notes.

The settlement is being pursued through a scheme of arrangement mechanism together with Modernland Overseas Pte. Ltd. The restructuring scheme was launched on 14 August 2026.

In the voting process, which concluded on 24 August 2026, 103 out of 105 noteholders, or 98.10 per cent, approved the scheme.

Meanwhile, the value of Accepted Scheme Claims approving the scheme reached US$262.06 million, or 97.76 per cent.

The voting results were subsequently submitted to the Singapore High Court on 25 August 2026 to obtain approval. The sanction hearing is scheduled to take place on 17 September 2026.

Through RUPSLB II, shareholders also granted authority and powers to the Board of Directors of Modernland Realty to carry out the approved series of corporate actions.