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Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has asked the United States Bankruptcy Court for the Southern District of New York to recognise, under Chapter 15 of the US Bankruptcy Code, the results of its recent debt restructuring concluded in Jakarta, CEO Irfan Setiaputra revealed on September 26.

Chapter 15 allows for cooperation between US and foreign courts, as long as there is financial interest in proceedings that is favourable to the United States. Garuda filed the request at the end of last week, the chief executive said at a session of the House of Representatives, stressing that doing so does not mean the company has declared bankruptcy.

This was done, he said, so that the court would recognise the results of the restructuring under the local legal process known as the Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang - PKPU), which the carrier has now emerged from. The government of Indonesia claimed at the end of June that Garuda and its creditors - 347 of them or 95.1% of the total - had...

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