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 the process would soon reach “a meeting point”, so that all parties can then “welcome” Garuda Indonesia’s business transformation in full.
As Garuda Indonesia tries to hack USD9.8 billion of verified debts - and USD13.8 billion worth of claims - down to USD3.7 billion under the PKPU, it has repeatedly asked for more time to negotiate restructuring terms and verify the pile of claims. The court last granted an extension, by 60 days, in March, until May 20. It had previously prolonged it, also by 60 days, in January. It is unclear how many claims Garuda still has to verify, and the carrier has not responded to requests for comment.
Garuda Indonesia did not immediately respond to ch-aviation’s request for comment.
