PT Bank Central Asia Tbk (BCA) recently commented on the bankruptcy of PT Sri Rejeki Isman Tbk, commonly known as Sritex. As the largest creditor of the textile company, BCA's insights are critical amid the ongoing legal proceedings. Hera F. Haryn, the Executive Vice President of Corporate Communication & Social Responsibility at BCA, expressed that the bank respects the court's decision regarding Sritex's bankruptcy, which was declared by the Commercial Court under the Bankruptcy Law.

The legal status of bankruptcy is a significant matter, as it marks a company's inability to meet its debt obligations. Sritex's bankruptcy follows a lawsuit filed by one of its vendors. In a statement received by Kompas.com on October 28, 2024, Hera mentioned that BCA is also open to cooperating with all stakeholders involved, including the court-appointed curator. This cooperation aims to achieve the best possible resolution for both the debtor and all creditors.

Hera reported that BCA's loan at risk (LAR) ratio stands at 6.1% for the first nine months of 2024, which shows an improvement from the previous year's 7.9%. The bank’s non-performing loan (NPL) ratio is currently at 2.1%, indicating a stable financial position. BCA maintains adequate reserves for both LAR and NPL, with respective coverage ratios of 73.5% and 193.9%.

As the largest creditor of Sritex, BCA has significant financial exposure. According to Sritex's financial statements as of June 30, 2024, the company owes BCA approximately $82.68 million, comprising $11.37 million in short-term debt and $71.31 million in long-term obligations. This amount highlights BCA's crucial role as a lender to Sritex, particularly as the textile manufacturer faces significant financial challenges.

The total debt of Sritex amounts to approximately $828.09 million, representing about 51.8% of the company's total liabilities, which total around $1.59 billion. This situation underlines the financial strain Sritex is experiencing and the implications for its creditors, including BCA.

In light of Sritex's bankruptcy filing, the management is actively pursuing a cassation process to contest the court's ruling. BCA's proactive stance in supporting legal proceedings and maintaining open communication with stakeholders reflects the bank's commitment to managing its credit risks effectively.

KOMPAS.COM, KONTAN