Modernland Realty Gets Approval For Debt Restructuring

Distressed Indonesian property developer Modernland Realty got a nod from its bondholders for a restructuring according to Bloomberg. Under the restructuring deal, the property firm will replace its 10.75% 2021s and 6.95% 2024s with new bonds with maturities in 2025 and 2027 respectively. The 10.75% 2021s have an outstanding amount of $150mn and 6.95% 2024s have an outstanding amount of $240mn. The principal amount of the new debt would be the same as the outstanding amount of the current debt. The new issuance will be backed by some of the assets of the issuers and will offer a maximum interest of 6% and will consist of cash and payment-in-kind interest. The final restructure plan is likely to be put up for shareholders’ approval by July 1, 2021. Modernland has been one of the many property developers in Asia forced into a default due to the ongoing pandemic.