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Garuda Indonesia positive about restructuring ruling
December 14th 2021
Garuda Indonesia has welcomed a court decision to allow the company to suspend debt payments to creditors, describing it as an important foundation [for recovery] and a positive outcome for the airline. Read More » Late last week, the Central Jakarta Commercial Court ruled the carrier could suspend its debt payments to creditors. Garuda was given 45 days to negotiate with them under the country’s Debt Payment Obligation Postponement (PKPU) scheme. The window of opportunity to renegotiate up to US$9.8 billion in debt can be extended to 270 days. Garuda Indonesia president director, Irfan Setiaputra, stressed the PKPU process was not a bankruptcy process. In a regulatory filing to the Indonesia stock exchange, he said Garuda's restructuring efforts aimed for a balanced proposal that prioritised the principle of mutual interest for creditors, customers, business partners and other stakeholders. "With the support of all stakeholders and improving market conditions, as seen at the beginning of the fourth quarter of 2021, we are optimistic Garuda can realise a more sustainable performance recovery in the future," Setiaputra said.
