News
Cargo company makes court claim against Garuda seeking debt settlement
July 20th 2021
An Indonesian cargo airline, PT My Indo Airlines, has taken court action against Garuda Indonesia seeking a debt settlement. Read More » Garuda said in a regulatory filing to the Indonesia Stock Exchange it had received a notice of summons from the commercial court at the central Jakarta district court, with a hearing has been set down for July 27. The statement said PT My Indo Airlines had initiated a PKPU proceeding that sought to settle the outstanding debt. Garuda said the court action had no impact on its operations. The COVID-19 pandemic had severely impacted the airline's business. The company posted a US$2.4 billion net loss for the 12 months to December 31 2020, slumping deeper into the red from a net loss of US$39 million in the prior year. Revenue slumped 67.4% to US$1.5 billion, the airline's full year results showed. Auditor PwC wrote in the financial report there were "material uncertainties which may cast significant doubt about the group's ability to continue as a going concern".
