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Garuda Indonesia opens restructuring data room
November 19th 2021
Garuda Indonesia has submitted a restructuring proposal to lessors and creditors in what airline president, Irfan Setiaputra, has described as acceleration of the process. Read More » Garuda has invited all lessors and creditors to review the “comprehensive restructuring scheme” in a digital data room. “This proposal outlines Garuda’s long-term business plans and a number of offers in managing our business obligations with lessors, creditors and key suppliers,” Irfan said in a statement posted on the Indonesia Stock Exchange this week. “Submission of this restructuring proposal scheme is the first step of the entire restructuring process and is an important moment in our efforts to transform into a more adaptive, efficient and profitable business entity.” There had been media speculation Garuda would not survive and that the flag carrier lacked government support. However, the airline said in a separate stock exchange filing the restructuring process had the support of the government and also consultants. Responding to a report it planned to axe 97 routes in 2022, the airline said it would be optimising flights by focusing on domestic routes and selected international services that could contribute to the profitability of the company.
