Duniatex unit’s dollar default hurts lenders, crashes bonds

Mexico, sombrero, hat, textiles, Kaltex, fabric, LatAm
By Pan Yue
18 Jul 2019

A subsidiary of Indonesian textile company Duniatex missed an interest payment on a $260m syndicated loan last week, causing the bond price of its sister company to collapse and bankers to wonder about the wider health of the sector. Pan Yue reports.

Delta Dunia Sandang Tekstil (DDST), a spinning unit, failed to pay around $5m interest on a five year syndicated loan that was closed in 2016, according to sources. The direct reason leading to the default is unclear, although several market participants blamed tough conditions in the sector.

The ...

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