Amid global economic uncertainty, more and more Indonesian companies are facing pressure to restructure their debts. This article discusses strategies that have proven effective.

1. Realistic Financial Condition Assessment

The first step is conducting an honest and comprehensive assessment of financial conditions. Many companies delay this step because they are afraid to face reality, when in fact delay actually worsens the situation.

2. Creditor Classification

Not all creditors have the same position. Understanding the creditor hierarchy — from separatist creditors, preferential, to concurrent — is very important in designing a negotiation strategy.

3. Bilateral vs Multilateral Negotiation

In some cases, bilateral negotiation with major creditors is more effective before involving all creditors. Agreement from the main bank often becomes the key to getting agreement from other creditors.

4. Restructuring Options

Various options can be combined: tenor extension, interest rate reduction, debt-to-equity conversion (debt-to-equity swap), principal debt haircut, or a combination thereof.

AMR has assisted dozens of companies through successful debt restructuring. Let us analyze your situation and propose the optimal solution.