If Indonesia’s national carrier Garuda Indonesia wants to go ahead with the restructuring, it will have to pay creditors a total of 120.5 trillion rupiah ($8.3 billion), Bloomberg reported. Garuda’s bankruptcy administrators admitted the claims as the troubled airline tried to manage its debts. The largest claim came from European plane maker Airbus at more than 7.8 trillion rupiah ($540 million), documents posted online show. Indonesian state oil company Pertamina, which is seeking to recover IDR 7.5 trillion, was also on the list marked “final.” The numbers were released ahead of Garuda’s key court date…
Indonesia’s national carrier Garuda Indonesia will have to pay creditors a total of 120.5 trillion rupiah ($8.3 billion) if it wants to go ahead with the restructuring. Bloomberg News report.
Garuda’s bankruptcy administrators admitted the claims as the troubled airline tried to manage its debts.
The largest claim came from European plane maker Airbus at more than 7.8 trillion rupiah ($540 million), documents posted online show. Indonesian state oil company Pertamina, which is seeking to recover IDR 7.5 trillion, was also on the list marked “final.”
The figures were released ahead of a key June 8 court date for Garuda to develop a restructuring plan. A final vote on the proposal will take place later this month.
Operates only one-fifth of the fleet
Like many airlines, the Indonesian airline’s business has been hit by Covid-19. It is currently operating on about 20% of its pre-pandemic fleet, limiting its ability to generate operating income.
The recognized IDR 120.5 trillion is in stark contrast to the IDR 198 trillion originally proposed by creditors
Reasons for the administrator to deny the claim include that the bill has already been paid or that there is no record of expenditure. Some claims from sukuk holders were rejected on the grounds that they needed to be filed through a trustee.
Once the carrier has reached an agreement with its creditors, the Indonesian government plans to conduct a rights issue in two phases this year to raise more funds. The offering will take place early in the fourth quarter to allow strategic investors to buy stakes in the airline. The government plans to retain a 51% stake in Garuda.
