Regional Round-Up
Indonesia's Merpati faces closure
May 1st 2013
Indonesia’s state-owned, debt ridden domestic carrier, Merpati Nusantara Airlines, is facing closure, according to enterprises minister, Dahlan Iskan. His department is the sole shareholder in the airline. Read More »
He said there had been a number of requests for the carrier to be grounded. “I will check those recommendations one by one before making a final decision,” he said.
Dahlan suggested the government could conduct a debt-to-equity swap in a final bid to save the company.
Merpati has reported debts of $32.7 million. It owes money to several state-owned enterprises, including oil and gas firm Pertamina for fuel purchases, Bank Mandiri, airport operator Angkasa Pura II, state asset manager PPA and state-owned insurance company Jasindo.
