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Garuda Indonesia interim loss widens to US$878.7 million
September 2nd 2021
PT Garuda Indonesia has reported a net loss of US$898.7 million for the six months to June 30, a deterioration from a net loss of US$712.7 million in the same months in 2020. Read More » Operating revenue fell 24%, to US$696.8 million, Garuda said in a regulatory filing to the Indonesia stock exchange. Operating expenses were 16% lower, at US$1.4 billion. The company said the COVID-19 pandemic had had a major adverse impact on its operations and liquidity, with current liabilities exceeding current assets by US$4.7 billion and a "deficiency in equity of US$2.8 billion". Earlier in 2021, Garuda appointed Guggenheim Securities, Assegaf Hamzah and Partners, Cleary Gottlieb Steen and Hamilton LLP and PT Mandiri Sekuritas as advisors for its restructuring. It involves discussions with creditors and lessors, job losses, continuing financial support from shareholders and a relaxation of tax payment obligations. "Should the group fail to realise the above mentioned plans and measures, it might not be able to continue to operate as a going concern," Garuda said in its financial report.
