Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has been given a 60-day extension to complete the verification of ballooning claims in the initial phase of its court-led debt restructuring process, the stricken state-owned flag carrier said in a statement. Four lessors have so far backed the restructuring, the government said separately.

Central Jakarta Commercial Court had been set to hear creditors’ responses to a proposal to hack down Garuda’s debt pile on January 21, but a delay was granted after a request by both the airline and the majority of the creditors, the statement issued on the same day said.

Garuda is seeking to cut USD9.8 billion in debts to USD3.7 billion under the “debt payment obligation postponement” (Penundaan Kewajiban Pembayaran Utang - PKPU) process, the airline outlined in December, but it emerged earlier this month that it had received USD13.8 billion worth of claims from creditors, lessors, and vendors that it now needs to verify.

“The additional time provides an opportunity for all stakeholders to complete the verification process and ensure the PKPU runs according to prudent principles,” Garuda Indonesia CEO Irfan Setiaputra explained in the statement. “The extension also gives us more time to prepare a more mature settlement plan through intense and constructive negotiations.”

So far, Garuda has only managed to verify 148 claims out of a total of 501, CNBC Indonesia reported on January 21.

Four lessors that have leased aircraft to Garuda Indonesia Group, which also includes Citilink (QG, Jakarta Soekarno-Hatta), have so far approved its debt restructuring “peace proposal”, Erick Thohir, the country’s state-owned enterprises (SOEs) minister, divulged during a January 25 session of Commission VI, a House of Representatives grouping covering SOE affairs.

“The good news is that the four lessors who agreed to this [restructuring] are big lessors,” he claimed, as quoted by Indonesia’s VIVAnews.

Kartika Wirjoatmodjo, deputy minister for state-owned enterprises, revealed in December that that Garuda Indonesia will have to deal with 60 lessors among an estimated 780 entities as creditors.

Garuda Indonesia had submitted its debt-slashing proposal to all lessors in November, Thohir said adding that while four had given approval or support for the restructuring effort, 35 others are only at the negotiation stage. But Garuda must obtain just three additional confirmations of support from significant lessors for a majority to agree to the restructuring, he added.

In September, it emerged that Garuda Indonesia Group was in talks with lessors to return 71 of its aircraft, predominantly widebody units, and to cancel or restructure orders for a further 102. The bulk of the carrier’s fleet (currently 117 aircraft) are dry-leased.