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IMPLEMENTATION OF DEBT TO EQUITY SWAP AS A STEP FOR COMPANIES IN FACING THE THREAT OF BANKRUPTCY Najla Rafiki; Rianda Dirkareshza
Multidiciplinary Output Research For Actual and International Issue (MORFAI) Vol. 6 No. 1 (2026): Multidiciplinary Output Research For Actual and International Issue
Publisher : RADJA PUBLIKA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.18465346

Abstract

This article examines the implementation of debt to equity swap as a strategic legal mechanism for companies facing the threat of bankruptcy within the Indonesian legal system. The study departs from the phenomenon of corporate over-leverage and the increasing use of Postponement of Debt Payment Obligations (PKPU) as a forum for debt restructuring, and focuses on how the conversion of debt into shares can operate as an alternative corporate rescue tool rather than a purely financial technique. Using a normative legal research method with a statute, case, and conceptual approach, the research analyzes the legal framework governing debt to equity swap, including bankruptcy law, company law, and capital market regulation, and is conceptually grounded in Lawrence M. Friedman's legal system theory, encompassing legal structure, substance, and culture. The discussion is supported by case studies of PT Garuda Indonesia, PT Darma Henwa Tbk, and PT Bakrie & Brothers Tbk to assess the practical application, procedural requirements, and consequences of debt to equity swap. The findings indicate that, under appropriate conditions, debt to equity swaps can mitigate bankruptcy risk, restore financial health, recalibrate the relationship between companies and creditors, and strengthen ongoing concerns while still requiring careful attention to shareholder protection and regulatory compliance.
Co-Authors ., Taupiq Ade Syaifullah Fattah Agustanti, Rosalia Dika Ahmad Yani Ahsan Ridho Faturahman Aji Lukman Ibrahim Akbar, Sahda Saraswati Akhdan, Fariz Ridhanus Alberto Eka Sutisna Ali Imran Nasution Aliyya, Annisa Lisaana Sidqin Amanda, Nur Septiana Anisa Hesti Fitriyani Anjani, Risa Gia Anni Alvionita Simanjuntak Aras Firdaus Ardiantor , Andri Aryaputri, Aqila Shafiqa Azami, Muhamad Rafi Azzahra, Kesya Fadhilah Bagaskara, Muhammda Fadhil Bambang Waluyo Bernadin Dwi M Davilla Prawidya Azaria Desthabu, Meurina Diani Sadiawati Dias Prima Laurenza Dinda Maurizka Azura Dinda Pratiwi Dwi Desi Yayi Tarina Eka NAM Sihombing Eka NAM Sihombing Elizabet Devi Permatasari Elizabet Devi Permatasari Fahrudin Fahrudin Falevi, Yunizar Fareta Angelita Ichwana P Farizh Maulana Yusuf Fauzan, Aditya Rafi Gilang Abi Zaifa Gumilar, Egi Rivaldi Gunawan, Muhammad Gilang Hasna, Taria Hasudungan, Andrie Cornelius Hulu, Samuel Arthur Indra Kusuma Innayatu Dzil Izzati Jenji Gunaedi Argo Kaharuddin Karunia, Aura Dwi Kristina Simbolon Kristina Simbolon Laily Hanifah M. Rizki Yudha Prawira Mahmud, Suci Ramadhani Marasabessy, Masita Marcella, Grace Marsya Arviela Maharani Mouva Putri Ramadhita Mouva Putri Ramadhita Mouva Putri Ramadhita Muhammad fauzan Muhammad Yusrizal Adi Syaputra Murizqy, Muhammad Alhadi Muthia Sakti Nada Prima Dirkareshza Nadhira Imaniyar Najla Rafiki Nasya Zulaekha Putri Algamar Nilla Deva Lusyana Novyana, Hilda Nur Indah Putri Ramadhani Nurhalizah, Aisyah Permatasari, Elizabet Devi Pradana , Roni Pramaseta Widiawardana Pritha Maya Savitri Raden Alya Lutfiyyah Ramadhani, Dwi Aryanti Reyna Zahia Ribka Amelia Putri Tarigan Risa Gia Anjani Roni Pradana Sahda Saraswati Akbar Samual Arthur Hulu Satino Simbolon, Devri Santiyas Sintha Fransiske Simanungkalit Sitorus, Yosua Audric Matthew Suharyati Suharyati Surahmad Surahmad Surahmad, Surahmad Syahputra, Muhammad Amin Tatianna Daniella Usmany Taufiqurrohman Syahuri Taupiqqurrahman Tri Aprilidya Agri Vanessa Christina Siringoringo Wijaya, Safira YUDI NUR SUPRIADI Zaifa, Gilang Abi