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Garuda Indonesia receives government capital injection, seeking strategic investors
April 26th 2022
Garuda Indonesia is identifying strategic investors for participation in a rights issue to raise fresh capital, local media reports, quoting comments from the airline’s finance director, Prasetio, at a creditor court hearing. Read More » News of the proposed capital raising followed the Indonesian government's approval of a 7.5 trillion rupiah (US$519.1 million) capital injection into the flag carrier. The funding is subject to the airline reaching an agreement with creditors. Garuda is in discussions with creditors and lessors to reduce its US$9.8 billion debt to US$3.7 billion. It intends to withdraw from several routes and reduce its fleet of 142 aircraft by up to two-thirds, among other measures, to transform into a leaner, more efficient airline post-pandemic.
