Jakarta - PT Pan Brothers Tbk (PBRX) managed to escape the threat of bankruptcy after the Central Jakarta Commercial Court ratified a homologation agreement with the majority of creditors.

As part of the homologation agreement, Pan Brothers will restructure its US$ 340 million debt to bank creditors and bondholders.

The restructuring will be carried out through a mandatory convertible bond scheme, so that the company's remaining debt will be reduced to US$ 140 million.

This step is expected to strengthen Pan Brothers' financial position and support its business sustainability in the future.

Similar decisions also apply to Pan Brothers' two subsidiaries, PT Eco Smart Garment Indonesia and PT Prima Sejati Sejahtera.

This bankruptcy-free status was determined in the Consultative Session of the Panel of Judges on Monday, December 23, 2024.

With this determination, PKPU (Postponement of Debt Payment Obligations) cases number 149 and 150 involving Pan Brothers and its subsidiaries were declared over.

The Panel of Judges requires the company and its subsidiaries to comply with and implement the contents of the peace agreement.

Pan Brothers Director, Fitri Ratnasari Hartono, stated that her party will fully comply with the homologation verdict, although the company has not received an official copy of the verdict.

“The company's business activities and operations will continue to run normally,” said Fitri. (DK/LM)