Out-of-Court Restructuring
Negotiating and documenting bilateral restructuring agreements with banks and creditors.
Surabaya · East Java · Indonesia
Debt Restructuring Lawyer Surabaya — NPL Resolution & Credit Restructuring
Integra Law Office handles debt restructuring in Surabaya — advising banks and borrowers on non-performing loan resolution, credit restructuring, and debt negotiations. We help lenders recover and borrowers restructure, with experience across manufacturing, trading, and real estate sectors in East Java.
Debt restructuring in East Java.
Non-performing loans (NPL) are a persistent challenge in East Java's economy. Manufacturing companies face cash flow pressure from commodity fluctuations, trading firms struggle with unpaid receivables, and property developers face stalled projects and unsold inventory. When loans turn non-performing, both lenders and borrowers need experienced restructuring counsel.
Debt restructuring in Indonesia takes multiple forms: out-of-court restructuring, PKPU proceedings, and — in the worst case — bankruptcy. The right approach depends on the debtor's financial condition, the number of creditors, and whether the business is viable with restructured debt.
We advise both lenders (banks and multifinance companies) and borrowers (corporate debtors) on debt restructuring across East Java. Our dual perspective — representing both sides — allows us to design restructuring solutions that are realistic and sustainable.
When you need a debt restructuring lawyer.
Your company has non-performing loans and needs to negotiate a restructuring with banks or creditors.
You are a bank or financial institution with NPL exposure requiring recovery strategy and execution.
You need to decide between out-of-court restructuring, PKPU, or bankruptcy.
You require drafting of restructuring agreements — rescheduling, interest rate reduction, debt-to-equity conversion.
You are a creditor in a PKPU proceeding and need to evaluate and vote on composition plans.
You need to enforce security — mortgage execution, fiducia execution, or court-ordered sale.
Debt restructuring legal framework.
OJK Regulation 11/2020 (POJK 11/2020) provides the framework for bank credit restructuring, including criteria for restructuring qualification, types of restructuring (rescheduling, reconditioning, restructuring), and reporting requirements. This regulation was updated during COVID-19 and continues to apply.
For multi-creditor situations, the Bankruptcy and PKPU Law (UU 37/2004) provides the legal framework for court-supervised restructuring through PKPU proceedings. Out-of-court restructurings rely on contract law principles and bilateral negotiation between debtor and creditors.
Legal References
How Integra handles debt restructuring.
For borrowers, we start with a financial assessment — understanding the debtor's true cash flow position, identifying which debts can be restructured, and designing a realistic proposal. We then negotiate with creditors from a position of transparency, aiming for a consensual restructuring.
For lenders, we evaluate the debtor's financial condition, assess recovery prospects through restructuring versus enforcement, and negotiate terms that maximise recovery while giving the debtor a realistic chance of performance.
Debt Restructuring Services
PKPU Restructuring
Court-supervised debt restructuring through PKPU proceedings — filing, negotiation, and plan confirmation.
NPL Advisory (Lender)
NPL strategy and recovery — assessment, restructuring negotiation, enforcement, and portfolio management.
Debt Restructuring Agreement
Drafting rescheduling, reconditioning, and restructuring agreements — interest rate adjustments, tenor extensions, debt-to-equity conversions.
Security Enforcement
Enforcing mortgage, fiducia, and other security — Parate Eksekusi, court execution, and negotiated sale.
Frequently Asked Questions
What types of debt restructuring are available?
Three main types: rescheduling (extending repayment tenor), reconditioning (adjusting terms without changing the principal), and restructuring (comprehensive changes including interest rate reduction, principal reduction, or debt-to-equity conversion). The right type depends on the debtor's financial condition.
Can a company continue operating during debt restructuring?
Yes. Both out-of-court restructuring and PKPU proceedings allow the company to continue operations. In fact, maintaining operations is usually essential for generating cash flow to service restructured debt. The key is demonstrating viability to creditors.
What happens if restructuring fails?
If out-of-court restructuring fails, the options are PKPU (court-supervised restructuring) or bankruptcy. If PKPU fails — either because creditors reject the composition plan or the debtor fails to implement it — the court will declare the debtor bankrupt.
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Request a private consultation.
Describe your debt restructuring needs. A senior partner will respond within one business day.
Last reviewed: · by Budiarmanto Setyo Hutomo, S.H., M.H.