RESTRUCTURING SCHEME ANALYSIS CASE STUDY: DEBTOR OF BANK ABC

• Main Author: Agustina, Tanti
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/48163
• Institution: Institut Teknologi Bandung

Credit is a banking product that has a high risk. Credit risk is a loss if the debtor cannot pay his obligations on time to the bank. One way to be able to save problem loans is by restructuring. The restructuring aims to alleviate the debtor's obligations so that the debtor can pay his obligations. Before the restructuring is carried out, an analysis is needed to ensure that the restructuring scheme can proceed. This study aims to analyze one of the failed restructuring cases at ABC Bank, PT Taxi. PT Taxi is a company engaged in the field of taxi transportation services and vehicle rental such as tourism buses, limousines, etc. At the beginning of 2016, PT Taxi proposed a restructuring to Bank ABC due to a decrease in revenue and profit so that the company had difficulty paying its obligations to the bank. The decline in income and profits was mainly due to macroeconomic conditions, namely intense competition with online transportation. PT Taxi's restructuring scheme was approved in mid-2016. Bank ABC gave grace period of principal debt for 2 years accompanied by an additional credit term to 5 years (completed in 2021). However, the restructuring scheme failed and PT Taxi's collectability fell to a standstill in 2018. The method used in this study is capital budgeting which aims to find out whether PT Taxi's restructuring is feasible and provide alternative solutions if there are similar cases. The results obtained from the simulation carried out are, based on the base case and best-case scenario, a restructuring scheme is feasible to run. But in the worst-case scenario, the restructuring scheme is not feasible. In addition, the probability of PT Taxi's restructuring scheme failing is quite high, which is 30-40%, so it is recommended that banks can make other alternatives in resolving the problem loans, which is selling debtor assets. In the future, if there is a similar case where, after an analysis, the chances of a restructuring failing are quite high, the bank is advised to negotiate other alternatives to the debtor, which is selling the debtor assets. Banks can negotiate how much time needed to sell the asset and also give the debtor time to sell their assets in order to get prices that are in accordance with their market value.