📰 Weekly Roundup (16-22 June 2026): Thailand Radar #1 | Garuda Indonesia’s Maintenance Unit Plans Quasi Reorganization | 3 China Headlines #1 | Notes on Incentives vs Risks
Weekly newsletter
Dear Valued Contacts,
It was another packed week for Acrostics Asia, with coverage across Southeast Asia and selective China news.
I’ve also started writing more Asian credit notes, kicking off with my takeaways on why incentives outweighed the risks in Indonesian sovereign fund Danantara’s recent USD bond sale and palm oil producer Sawit Sumbermas Sarana’s refinancing in 2022.
On another note, my trial and error with AI while building Acrostics Asia was featured by LinkedIn News among the top perspectives.
🛜 Thailand Radar #1 (16 June 2026)
Stress is building in Thailand’s economy, which has been weighed down by rising energy costs, falling tourist arrivals and political volatility.
Five listed Thai companies defaulted on a combined THB 546 million (USD 15.2 million) of debt in the first quarter of 2026, according to an S&P report. The fresh wave of defaults will weigh on the refinancing outlook for an upcoming THB 421 billion (USD 12 billion) in debenture maturities in the second half of 2026, S&P said.
Companies to Watch: Italian-Thai Development, Hanuman Wind Power
People to Watch: Chandler Mori Hamada was named Thailand Law Firm of the Year at the 22nd Annual ALB SE Asia Law Awards 2026
🚨 Newsflash: Garuda Indonesia’s Maintenance Unit Plans Quasi Reorganization (17 June 2026)
Flag carrier Garuda Indonesia’s aircraft maintenance unit, Garuda Maintenance Facility Aero Asia (GMF AeroAsia), disclosed plans for a “quasi reorganization” to eliminate its retained earnings deficit.
I wrote that GMF is taking a similar path as Indonesian coal miner Bumi Resources, which also reset its balance sheet last year. However, GMF would still need an operational turnaround to achieve a recovery beyond an accounting reset.
📑 3 China Headlines #1 (17 June 2026)
China Evergrande: The collapsed developer’s liquidators are likely going hard after PwC, Evergrande’s long-time auditor, because there isn’t much to recoup onshore. I wrote that capital structure may not hold up in mainland China, where local homebuyers, suppliers or contractors tend to be prioritized over offshore creditors in a major debt restructuring partly because of the potential cascade effect throughout the economy.
Missing 34th Floor: A Chinese man reportedly bought a flat on the 34th floor of a newly developed building only to be told four years later that the building just had 32 floors. The news raises questions on the scale of such ‘grey’ flats in China and how many were left incomplete if developers ran out of money halfway through their construction.
China’s AI Race: Chinese universities are cutting thousands of so-called obsolete degrees in favour of new, tech-focused programs. I wrote that while the tech drive is aimed at mitigating China’s ‘graduate jobs crisis’, the industry is evolving so rapidly that it’s unclear whether the skills being learned by these students would make them more employable by the time they graduate from university.
📖 Notes on Incentives vs Risks (20 June 2026)
“Show me the incentive and I’ll show you the outcome.”
That quote from the late American investor Charlie Munger is applicable across various situations including Asian credit, where lenders and borrowers strive for a mutually acceptable agreement in repayments, refinancings and restructurings.
Throughout my reporting career, I’ve learned to keep an open mind and not draw premature conclusions because the outcome in some situations may depart from the consensus. This was illustrated by two examples in Indonesian credit.
💵 Danantara
Earlier this month, Danantara launched its debut international bond roadshow amid “Sell Indonesia” headlines and market outflows, raising concerns about lacklustre demand or higher borrowing costs for the sovereign fund.
I wrote on 9 June 2026 that despite questions about the intended allocation of the bond proceeds and where the issuer sits in the overall structure, investors largely viewed Danantara as a sovereign-linked credit. This was confirmed when the fund sold USD 1.5 billion of notes and tightened the yields three days later.
The takeaway is that there could be a dozen risks why a deal may not work out, and yet some investors just need one reason to buy: perceived state backing.
🌴 Sawit Sumbermas Sarana
Around four years ago, offshore bondholders were anxious about whether they would be repaid when the Indonesian palm oil producer’s USD 300 million notes came due in January 2023.
Some of them were concerned about the related party transactions within the Citra Borneo Indah (CBI) Group and dividend payments to shareholders. These bondholders were also agitated because they didn’t get a response from the management for months.
In the end, Sawit Sumbermas managed to get a IDR 3.6 trillion (around USD 240 million at the time) syndicated loan from a group of local banks to help refinance the notes, surprising even the bondholders.
There were three key reasons why the banks gave that loan: flush liquidity, strong palm oil prices, and sufficient collateral offered by the company.
The takeaway from the Sawit Sumbermas episode is that a rising tide can lift the boats, although this depends on a confluence of factors.
Anchored in Southeast Asia, Acrostics Asia breaks news and delivers forward-looking insights across sovereigns, private credit and restructurings over the years. These include the Indonesian president’s inner circle, Danantara, Garuda Indonesia, Bumi Resources, Sritex, Del Monte, Novaland and Serba Dinamik.