Distressed state construction company PT Waskita Karya of Indonesia said it won’t be able to deposit funds for the payment of interest and the repayment of principal for its rupiah bonds due Aug. 6, according to a filing late Friday.
(Bloomberg) — Distressed state construction company PT Waskita Karya of Indonesia said it won’t be able to deposit funds for the payment of interest and the repayment of principal for its rupiah bonds due Aug. 6, according to a filing late Friday.
The rupiah-denominated notes of the heavily indebted builder has total outstanding of 135.5 billion rupiah ($8.9 million), according to data compiled by Bloomberg. The failure to make payments came after the company also missed a coupon payment due May 30, Waskita said in a statement.
Waskita’s total debt ballooned to more than 60 trillion rupiah at the end of 2022, from around 3 trillion rupiah in 2014 — the year President Joko Widodo took office — as the leader of Southeast Asia’s biggest economy pushed through his legacy-defining infrastructure projects.
In the period since the president took the helm, the debt load of the country’s four-biggest construction firms, including Waskita and PT Wijaya Karya, have swelled to around 130 trillion rupiah as of the end of the first quarter.
The crushing debt burden led Waskita to seek bondholders’ approval to defer payments of some of its obligations earlier this year as it seeks to restructure its debt. Since then, Wijaya Karya has also asked for payment deferral from its banks.
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