Legal Certainty on the Role of Investors as White Knight in the Process of Suspension of Debt Payment Obligations

The objective of this research is to analyze the legal certainty concerning the role of investors as white knights in the Suspension of Debt Payment Obligations process in Indonesia and to identify the role of such investors in rescuing companies facing financial distress under the Suspension of Debt Payment Obligations scheme. Suspension of Debt Payment Obligations serves as a legal mechanism that allows debtors the opportunity to restructure their debts. In practice, the involvement of white knight investors has emerged as a viable solution to prevent bankruptcy by providing additional capital or implementing favorable restructuring schemes. This study employs a normative juridical research method with a statutory approach, case approach, and conceptual approach. The findings indicate that although white knight investors can offer a strategic solution for both creditors and debtors, there is currently no legal certainty regarding their status. White knight investors may play a critical role in averting bankruptcy and ensuring business continuity by injecting capital, initiating management reform, opening access to new funding, or through capital participation, share acquisition, and/or debt-to-equity conversion. As a recommendation, a clear regulatory framework within the Bankruptcy and Suspension of Debt Payment Obligations Law is necessary to govern the role of white knights, including their rights, obligations, and legal protections. Such legal certainty is expected to enhance the effectiveness of the Suspension of Debt Payment Obligations process and maintain stability in Indonesia’s business environment.