SINGAPORE: Indonesian clothing firm PT Sri Rejeki Isman plans to propose the reactivation of working capital facilities through a revolving loan in the amount of US$275mil (RM1.14bil) in a creditors’ meeting.

       The secured working capital revolver would help the Jakarta-listed company, known as Sritex, in the procurement of raw materials and reduce the needs to make cash advance payments to its raw material suppliers, according to a proposed term sheet dated Nov 5 that was accessed through a link in a filing to Singapore exchange.

       Sritex would offer the total commitments under the revolver to eligible participating holders on a pro rata basis based on the outstanding principal amount of their bilateral loans and/or syndicated loans, the term sheet said.

       Interest for the revolver would accrue at varying rates, depending on the original currency of the exposure of the participating holders, either in rupiah, US dollar or euro. The facility would be effective for a duration of five years.

       The secured working capital revolver would be part of Sritex group’s proposed debt settlement, worth an equivalent of US$1.4bil (RM5.82bil), the document shows. In addition to the revolver, Sritex would also seek a US$350mil (RM1.46bil) nine-year secured term loan.

       A creditors’ meeting to discuss the term sheet is set for Nov 12, according to the filing. — Bloomberg