**Sritex Faces Legal Turmoil as Going Concern Rejected and New Legal Team Steps In**
In Semarang, the controversy surrounding the bankruptcy of PT Sri Rejeki Isman Tbk, also known as Sritex, is escalating. The team of curators handling Sritex’s bankruptcy has refused to submit a going concern or the continuation of the operations of Indonesia’s largest textile factory. The primary reason behind this decision is the potential losses that the curators foresee if Sritex continues its business activities.
On the other hand, Sritex has revamped its legal team. The team is currently preparing various legal steps to ensure the continuity of Sritex’s operations. Denny Ardiansyah, a member of Sritex’s Curator Team, revealed that after the initial meeting with Sritex’s creditors in November 2024, they followed up by inviting the debtor to meet at the curator team’s secretariat office. “During that time, the CEO was once again absent. The one who always attended was the CFO, Mr. Wilis Salam. There was also an independent director, Ms. Regina,” Denny stated during a press conference in Semarang on Monday night.
### **Challenges with Going Concern and Working Capital**
During the meeting, the issue of working capital was also discussed. Denny mentioned, “It was also conveyed that the current working capital is very limited, making it extremely difficult for going concern to be feasible.” According to Denny, there was a debate between Sritex’s CFO and the independent director at that time. With the persistent demand to maintain Sritex’s business continuity, Denny feels that the curator team is in a tight spot.
He further explained that so far, the curator team has only held separate meetings with several ministries. “With the Ministry of Industry, for example, with the Coordinating Ministry for Economic Affairs, with the Ministry of Manpower, the key is to avoid layoffs. So, how can we maintain business continuity without layoffs?” Denny questioned.
### **Financial Concerns and Legal Actions**
Denny emphasized that in accordance with Article 72 of the Bankruptcy and PKPU Law, the bankrupt assets of the debtor are the responsibility of the curators. “When it comes to going concern, we refer to Article 72, and if anyone dares to take responsibility for the losses incurred from going concern, we are ready to act,” he added. Denny also mentioned that based on Sritex’s report in June 2024, the production and sales processes of Sritex have suffered significant losses.
Currently, Sritex is preparing to file a Review after the Supreme Court rejected their appeal regarding the bankruptcy decision made by the Commercial Court of Semarang. PT Sritex was declared bankrupt by the Commercial Court of Semarang on October 21, 2024.
### **New Legal Representation and Future Plans**
Sritex has appointed Patra M Zen & Partners and JG Partner as its new legal counsels. The new legal team has already outlined several strategies to focus on handling Sritex’s situation. Patra M Zen expressed appreciation for the government’s proactive stance in ensuring Sritex’s rescue amidst the ongoing legal battle. He emphasized the significant contributions Sritex has made to the community, government, and Indonesian business sector over the past 58 years.
Furthermore, Patra highlighted the challenges and obstacles faced in the current legal process involving Sritex. “We believe that the curators of Sritex lack the vision and willingness to save Sritex. We even suspect that the curators have engaged in actions that could be classified as criminal. Therefore, we are preparing legal steps to defend the interests of our clients,” Patra concluded.
The situation surrounding Sritex’s bankruptcy continues to evolve, with legal battles and financial concerns at the forefront of the company’s challenges. The decisions made in the coming days will have a significant impact on the future of Sritex and its stakeholders. Stay tuned for more updates on this developing story.
