Sidley Advises Pan Brothers on Its US$533 Million Debt Restructuring

Sidley advised PT Pan Brothers Tbk (Pan Brothers), the largest garment manufacturer in Indonesia, as international counsel on its approximately US$533 million debt restructuring, implemented through an Indonesian restructuring plan.

The restructuring plan involves: (i) New York law bonds, (ii) an English law-syndicated facility, and (iii) multiple bilateral Indonesian law facilities. In exchange for release of their claims, noteholders will receive: (a) new secured notes and Mandatory Convertible Bonds (MCBs), or (b) new unsecured notes. Bank lenders will have their facilities extended or claims converted into new loan tranches and/or MCBs.

The new notes and new loan tranches will significantly enhance Pan Brothers’ maturity profile, extending maturities by 11-15 years.

The Sidley team was led by Alexius Chong (Capital Markets), Dhevine Chandrapala (Restructuring), and Daniel Lindsey (Global Finance), and included Ibrahim Abdel Salam Babiker (Restructuring), Joel Lam (Capital Markets), Wilfred Ong (Global Finance), and Michael Atkinson (Restructuring).