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 the costs of restructuring, tax payments, jet fuel debts, debts to staff, “employee rationalisation,” and aircraft leases, among other costs, the report elaborated.