Delta Merlin Dunia Textile Credit Report

25 July 2019

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Delta Merlin Dunia Textile's (DMDT) USD 300m bonds plummeted about 70 points last week, to the 30s, in reaction to Debtwire's 15 July report that parent Duniatex appointed AJCapital Advisory as a financial advisor for a possible debt restructuring and that a yarn spinning sister company missed an interest payment.

The Duniatex Group is one of the largest integrated textile manufacturers in Indonesia. DMDT is the group's sole midstream weaving unit and is highly reliant on sister companies for both supply and sales, which is why the financial health of those sister companies could have significant impacts on the operations of DMDT and the recovery of its due-2024 bonds.