24.05.2022 - 01:48 UTC
Indonesia’s judiciary has for the third time extended the deadline for the debt restructuring that Garuda Indonesia (GA, Jakarta Soekarno-Hatta) is currently grappling with by another month, a representative of Central Jakarta Commercial Court revealed on May 20.
The ruling agrees to the embattled state-owned carrier’s request the previous week to do so. The new deadline is June 20, the business news site Kontan reported.
Garuda Indonesia CEO Irfan Setiaputra explained that this latest extension in the court-led “debt payment obligation postponement” (Penundaan Kewajiban Pembayaran Utang - PKPU) process is a positive signal for the restructuring’s “acceleration”. The new postponement provides a timeframe through which negotiations on the “peace plan” with creditors can be finalised soon, he continued.
“This latest PKPU extension is also an important sign that the ongoing communication process between Garuda and its creditors shares the same optimism about Garuda’s business outlook going forward, and shows the trust of the panel of judges and the management team,” he added.
The chief executive reiterated that he hoped that all stages of...
12.05.2022 - 00:18 UTC
Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has asked Central Jakarta Commercial Court to allow a third extension of its deadline to complete its protracted debt-restructuring process, CEO Irfan Setiaputra revealed at a creditors’ meeting at the court on May 10.
The ongoing verification of claims still needs more time, he explained, so the state-run carrier proposed another 30 days for this and for finalising negotiations with creditors under the court-led “debt payment obligation postponement” (Penundaan Kewajiban Pembayaran Utang - PKPU) process.
“It is indeed not easy, so we would like an additional 30 days. We are quite confident that this will be the last extension we propose to the court,” the chief executive pledged, “because we don’t want to be unfair to those who have agreed with the value of their claim or with our proposals.”
He added: “The complexity Garuda faces is not only past debt but also future obligations, especially to lessors and other entities and vendors.” The court will decide on whether to grant more time on May 20, he said. Creditors...
28.04.2022 - 23:10 UTC
Garuda Indonesia (GA, Jakarta Soekarno-Hatta) will seek to raise IDR13.5 trillion rupiah (USD930 million) from the rights issue its finance director told creditors about earlier this week, to be held after it completes its court-led debt restructuring, a report by a parliamentary committee working on the flag carrier’s rescue said.
With the debt restructuring “peace” process - in which the troubled flag carrier wants to cut its debt from USD9.8 billion to USD3.7 billion - now expected to be completed by May 20, the committee reportedly expects the rights issue to take place during the second half of 2022.
The offering has two stages, the report outlined, with the first to be held in September to raise IDR7.5 trillion (USD521 million) to accommodate the newly approved capital injection from the Indonesian state. The second round, a private placement to take place in November or December, aiming for USD409 million, “will be met by minority shareholders or strategic investors,” the parliamentary report said.
If raised, the funds will be put towards...
26.04.2022 - 00:52 UTC
One business day after a group of parliamentarians approved a government plan to inject a further IDR7.5 trillion rupiah (USD520 million) into the capital of Garuda Indonesia (GA, Jakarta Soekarno-Hatta) this year, the distressed carrier said it planned to conduct a rights offering to raise additional cash.
The airline will invite strategic investors to take part in the equity issue, its finance director Prasetio told creditors during a court hearing on April 25. It expects to undertake the move once the Indonesian government provides the fresh funding.
“Our first priority is to partner with local investors before we then expand our search to include international ones,” he said, as quoted by Bloomberg.
Jakarta has hinted that it is open to the idea of private investors becoming majority owners of the airline, which continues talks with creditors to restructure its approximately USD13.7 billion debt pile. For example, Erick Thohir, minister of state-owned enterprises, commented last December that placing Garuda and other aviation and tourism enterprises under holdco Survai Udara Penas was part of...
