News
Garuda Indonesia invokes “grace period” for bond repayment and evaluates strategic options
June 4th 2021
Garuda Indonesia said in a regulatory filing to the Indonesia Stock Exchange it had "elected to take advantage of the 14-day grace period" on its US$500 million Sukuk, or Islamic bonds, due in 2023. Read More » The temporary reprieve will allow the airline to defer the June 3 periodic distribution as it considers "all available strategic alternatives". Garuda said PT Mandiri Sekuritas, Cleary Gottlieb Steen and Hamilton LLP and Assegaf Hamzah and Partners have been hired to assist in the evaluation of the strategic alternatives as the ongoing decline in air traffic due to COVID-19 continues to pressure its operations and liquidity. "Garuda is greatly appreciative of the support shown by holders of the Sukuk during these challenging times," Garuda CEO, Irfan Setiaputra, said. "Our goal is to ensure the company emerges from the pandemic as a strong, well-capitalised airline that provides world class services to the citizens of Indonesia and the travelling public." Garuda said it would announce a final determination before the expiration of the grace period.
