Scribd Logo
Upload

Welcome to Scribd!

  • 32 views

    Financial Distress Case of Indonesian Firm: PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK)

    Uploaded by

    Riley
    PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK) was delisted from the Indonesian Stock Exchange in May 2018 due to insolvency. DAJK proposed debt restructuring in 2017 but was unable to pay its creditors, including its largest creditor Bank Mandiri. The commercial court then declared DAJK insolvent. DAJK had total liabilities of Rp1.15 trillion owed to 96 creditors. Its financial statements showed decreasing assets and continuous losses from 2015 to 2017. DAJK operated in the paper industry which faced issues with raw material availability, environmental regulations, and an unsupportive business environment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial Distress Case of Indonesian Firm: PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK)

    Uploaded by

    Riley
    32 views2 pages
    PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK) was delisted from the Indonesian Stock Exchange in May 2018 due to insolvency. DAJK proposed debt restructuring in 2017 but was unable to pay its creditors, including its largest creditor Bank Mandiri. The commercial court then declared DAJK insolvent. DAJK had total liabilities of Rp1.15 trillion owed to 96 creditors. Its financial statements showed decreasing assets and continuous losses from 2015 to 2017. DAJK operated in the paper industry which faced issues with raw material availability, environmental regulations, and an unsupportive business environment.

    Original Title

    29019033_delisted-converted.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK) was delisted from the Indonesian Stock Exchange in May 2018 due to insolvency. DAJK proposed debt restructuring in 2017 but was unable to pay its creditors, including its largest creditor Bank Mandiri. The commercial court then declared DAJK insolvent. DAJK had total liabilities of Rp1.15 trillion owed to 96 creditors. Its financial statements showed decreasing assets and continuous losses from 2015 to 2017. DAJK operated in the paper industry which faced issues with raw material availability, environmental regulations, and an unsupportive business environment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views2 pages

    Financial Distress Case of Indonesian Firm: PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK)

    Uploaded by

    Riley
    PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK) was delisted from the Indonesian Stock Exchange in May 2018 due to insolvency. DAJK proposed debt restructuring in 2017 but was unable to pay its creditors, including its largest creditor Bank Mandiri. The commercial court then declared DAJK insolvent. DAJK had total liabilities of Rp1.15 trillion owed to 96 creditors. Its financial statements showed decreasing assets and continuous losses from 2015 to 2017. DAJK operated in the paper industry which faced issues with raw material availability, environmental regulations, and an unsupportive business environment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Yanri Nur Jannah

    29019033

    Financial Distress Case of Indonesian Firm

    Firm in Financial Distress:


    PT Dwi Aneka Jaya Kemasindo Tbk. (DAJK)

    Major Cause:
    Insolvency

    Highlight of the Distress:


    PT Dwi Aneka Jaya Kemasindo has been delisted from Indonesian Stock Exchange (IDX) in 18
    May 2018 after four years of IPO. The delisting of the firm has been decided due to the firm’s
    insolvency. The firm proposed Penundaan Kewajiban Pembayaran Utang (PKPU) since 2017 as
    it could not able to pay the debt to the creditors. However, the main creditor of the firm (in this
    case, PT Bank Mandiri is the biggest creditor) filed for homologation cancelation and
    Commercial Court declared the firm as insolvent.

    What happens/happened when the firm in financial distress:

    The agreement to delist the DAJK securities does not eliminate the liabilities that must be
    fulfilled by the company. The total liabilities of the firm amount for Rp 1,15 trillion, consist of
    96 creditors. The biggest bill holders are from Bank Mandiri and Standard Chartered Bank. Bank
    Mandiri has a bill of Rp 490.19 billion, Singapore SCB Rp 261.48 billion, and Jakarta SCB Rp
    100.67 billion. In addition to the two banks, DAJK also has debts to Bank Danaman of Rp 12.05
    billion, Citibank of Rp 33.23 billion, Commonwealth of Rp 53.31 billion, and BRI Syariah Bank
    of Rp 185.16 billion.

    Looking at the firm’s financial statement as of September 2017, the total asset of DAJK is Rp 1,3
    trillion, reflecting a decrease from December 2016 which account for Rp 1,5 trillion. The firm
    has experienced continuous loss since 2016 meaning the firm was not able to generate profit for
    the last three years. Its revenue also has gone down from 2015. The price of the stock also
    happened to continuously fall until January 2018 following the firm’s poor performance for the
    last three years.

    The firm has stated several causes for its financial distress. After the homologation obtained by
    the firm, several events happened in the firm causing the firm failed the homologation which
    then made the creditor filed cancelation of the homologation. First of all, majority of the
    directors resigned right after the homologation statement, leading to a difficult situation for the
    administration in such distressed firm. Moreover, shareholders never inject fresh funds (working
    capital). So there is no additional capital for the company. As for some time back, the paper
    company only runs from a small purchase order (PO). However, the firm strived to defend the
    company by filing for cassation in the Supreme Court.

    Last but not least, the firm was in the paper and pulp industry in which, at that time, the industry
    faced issues making firms have difficulty operating their businesses. The industry was
    experiencing barriers to the availability of raw materials both related to government policies and
    pressure from competing countries related to environmental problems. Also, the energy and trade
    issues are worsening the business environment. In terms of government regulation, there is no
    policy that encourages a more conducive business climate for the pulp and paper industry
    especially for the availability of raw materials, energy and trade.

    You might also like