Debt and Corporate Restructuring
Financial distress compresses time and magnifies risk. Whether the mandate is to restructure an unsustainable debt position, defend against a creditor petition, or pursue recovery on behalf of a lender, we provide the legal precision and strategic judgment that each side of the table requires. We act for debtors and creditors alike, and we understand both positions.
Our service covers:
I.Financial Distress Advisory and Negotiation
STRATEGIC COUNSEL BEFORE FORMAL PROCEEDINGS BECOME NECESSARY
The window for an out-of-court resolution is often narrower than it appears. Early legal intervention, a clear assessment of options, and disciplined negotiation strategy can determine whether a distressed company exits through restructuring or through insolvency. We engage at the earliest stage to preserve that window.
- Debt Restructuring Options Analysis
Comprehensive legal and structural analysis of available restructuring pathways, identifying the most viable approach given the company’s debt composition, creditor profile, and operational outlook.
- Creditor Negotiation Strategy
Development and execution of negotiation strategy with creditors, including banks, bondholders, and trade creditors, aimed at achieving sustainable restructured terms without triggering formal proceedings.
- Credit Document Review and Covenant Analysis
Detailed review of existing loan agreements, security documents, and debt covenants, with assessment of current compliance status, default risk scenarios, and available waiver or amendment options.
- Standstill and Settlement Negotiations
Legal representation during standstill negotiations with creditors and drafting of settlement terms, intercreditor arrangements, and restructuring support agreements that protect the client’s position.
II.Restructuring Solutions
IN-COURT AND OUT-OF-COURT PATHWAYS TO CORPORATE CONTINUITY
Not every distressed situation ends in insolvency. When the business is fundamentally viable, the legal objective is to create the conditions for continuity: restructuring debt obligations, recapitalizing the balance sheet, and managing the formal proceedings that protect the company while that work is done. We guide debtors through each of these pathways.
OUT-OF-COURT RESTRUCTURING
- Out-of-Court Debt Restructuring
Structuring and documentation of consensual debt restructuring arrangements outside formal judicial proceedings, including rescheduling, haircut agreements, and amended facility terms.
- Debt-to-Equity Conversion
Legal structuring and full documentation of debt-to-equity swap arrangements, converting outstanding debt obligations into equity interests with the appropriate corporate approvals and notarial coordination.
IN-COURT RESTRUCTURING AND INSOLVENCY DEFENSE
- PKPU Representation (Suspension of Debt Payment)
Expert representation of debtors in Penundaan Kewajiban Pembayaran Utang (PKPU) proceedings before the Commercial Court, including plan preparation, creditor negotiations, and homologation.
- Bankruptcy Defense
Defense against creditor-initiated bankruptcy petitions, including procedural challenges, substantive responses, and alternative resolution proposals presented before the Commercial Court.
- Business Turnaround Legal Support
Comprehensive legal accompaniment for companies undergoing operational turnaround, including governance restructuring, contract renegotiation, and regulatory compliance during the transition period.
- Cross-Border Restructuring
Advisory on the Indonesian legal dimensions of cross-border debt restructuring, including coordination with foreign counsel, recognition of offshore proceedings, and multi-jurisdictional creditor management.
III.Creditor Protection and Asset Recovery
ENFORCING RIGHTS AND MAXIMIZING RECOVERY FOR LENDERS AND CREDITORS
A creditor’s position in a distressed situation depends entirely on the speed and quality of the legal response. Security rights must be enforced before assets deteriorate. Bankruptcy petitions must be structured correctly to succeed. Recovery strategies must account for intercreditor dynamics and asset tracing. We represent creditors with the urgency and precision the situation demands.
- Bankruptcy Petition Filing and Management
Initiation and management of bankruptcy proceedings before the Commercial Court on behalf of creditors, including petition drafting, evidence preparation, and representation at all hearing stages.
- Enforcement of Security Rights
Strategic enforcement of creditor security interests, including mortgage rights (Hak Tanggungan), fiduciary security (Jaminan Fidusia), and pledge arrangements, through KPKNL or judicial channels as applicable.
- Collateral Execution and Guarantee Realization
Legal assistance in the realization of collateral and execution of personal or corporate guarantees, including coordination with the relevant enforcement authorities and asset custodians.
- Receivables Recovery and Liquidation Representation
Pursuit of outstanding receivables through legal channels and representation of creditors in corporate liquidation proceedings, including claims verification, curator coordination, and creditor committee participation.