East Ventures-backed CoHive starts restructuring process

Evi Asia Tenggara, the legal entity of Indonesia-based co-working space operator CoHive, has had its debt payment obligations temporarily suspended by a court in Jakarta.

A communal area at a CoHive co-living space / Photo credit: CoHive

These types of rulings typically give a debtor some time and space to come to an arrangement with its creditors.

During the suspension period – 45 days for temporary suspension and 270 days for permanent suspension – the debtor does not have to pay what it owes. But if it can’t pay this back and has not reached an agreement with its creditors when the ruling expires, the judge will declare the debtor bankrupt.

Tech in Asia has reached out to CoHive to find out more.

East Ventures incubated CoHive in 2015. And the co-working space operator has expanded to 30 locations across Jakarta, Tangerang, Medan, Surabaya, and Yogyakarta since then.

However, the firm had to close some of its spaces when the pandemic hit the country, with the firm’s website now only listing nine co-working space locations.

See also: These are the most active investors in Indonesia’s startups

Meanwhile, three other co-working startups in the region – Common Ground, The Hive, and The Cluster – merged to form The Flexi Group. After the deal, which was backed by Patrick Grove’s Catcha Group, The Flexi Group is expected to be headquartered in Kuala Lumpur.