Garuda Indonesia (GA, Jakarta Soekarno-Hatta) administrators have so far recognised IDR120.5 trillion rupiah (USD8.3 billion) worth of claims from creditors, with lessors making up the majority of this amount. Meanwhile, the distressed airline plans to hold a rights issue later this year.

As the debt-riddled flag carrier's court-led "debt payment obligation postponement" (Penundaan Kewajiban Pembayaran Utang - PKPU) restructuring process limps towards its conclusion (the courts extended its deadline for the third time last month, to June 20), online documents show that lessors constitute IDR82.73 trillion (USD5.7 billion) of the verified claims. However, the biggest single creditor is Airbus (AIB, Toulouse Blagnac), which has staked a claim for IDR7.8 trillion (USD538,000). State-run oil company Pertamina is looking to recover IRD7.5 trillion (USD517,000).

The total amount is lower than the USD13.85 billion in liabilities that the carrier admitted to in early January, which was in turn higher that the USD9.8 billion it had previously cited when it embarked on the PKPU process in December.

However, the administrators have made it clear that the latest figures are not final, as IDR42.7 billion (USD2.9 billion) in claims, mostly from lessors, are still being evaluated. The timetable now, they added, is that creditors are due to convene for a meeting later this week to discuss a proposal from the airline before taking a vote on the restructuring plan on June 15.

Garuda Indonesia is currently operating about 20% of its pre-pandemic fleet - stunting its chances of drumming up revenue to repay its debts, which it wants to hack down to USD3.7 billion under the PKPU. According to the ch-aviation Commercial Aviation Aircraft Data module, it operates a fleet of 109 aircraft, 37 of which are active. Regional subsidiary Citilink (QG, Jakarta Soekarno-Hatta) operates a further 59 aircraft, of which 42 are active.

Once a "peace deal" between carrier and creditors is struck, the Indonesian government plans a rights issue in two stages to raise further funds, the deputy minister for state-owned enterprises, Kartika Wirjoatmodjo, told a parliamentary committee hearing on June 7.

The government will inject IDR7.5 trillion (USD517 million) via the first rights offering, while the second will be conducted "maybe around the beginning of the fourth quarter for additional funding from strategic investors" to acquire shareholdings in the airline, he said. The government will retain a 51% stake in the carrier.

Garuda Indonesia did not immediately respond to ch-aviation's request for comment.