News
Garuda Indonesia requires minimum funds injection of US$1 billion
November 2nd 2021
Garuda Indonesia is in talks to restructure US$6.3 billion in debt and needs at least US$1 billion in fresh capital to stay afloat, a senior Indonesian official has said. Read More » But Kartika Wirjoatmodjo, a deputy minister at Indonesia’s State-Owned Enterprises Ministry, told Bloomberg News the Indonesian government was not trying force the airline into bankruptcy. There has been speculation the Indonesian government was preparing to cut Garuda loose and replace it with charter airline, Pelita Air. “We are negotiating with many parties with different needs, so their preferences vary,” Wirjoatmodjo told Bloomberg. “I have to emphasize the government is not looking to bankrupt Garuda. What we are looking for is debt settlement either outside court proceedings or through court proceedings.”
