Garuda Indonesia creditors can claim $8.3 billion
Indonesia’s national airline Garuda Indonesia will have to pay its creditors a total of 120.5 trillion rupiah ($8.3 billion) if it wants to carry on with its restructuring, Bloomberg News reported.
Bankruptcy administrators for Garuda have acknowledged the claims as the beleaguered airline seeks to manage its debts.
Documents posted online showed the biggest claim is coming from European plane maker Airbus at more than 7.8 trillion rupiah ($540 million). Indonesia’s state oil company Pertamina, which is looking to recover 7.5 trillion rupiah, also featured on the list labeled “final.”
The figures came ahead of a key court date for Garuda on June 8 to lay out its restructuring plan. A final vote on the proposal is due to take place later this month.
Only operating a fifth of its fleet
Like many airlines, the Indonesian carrier’s business took a hit due to Covid-19. It is currently running on roughly 20 per cent of its pre-pandemic fleet, curbing its ability to generate operating income.
The acknowledged sum of 120.5 trillion rupiah stands in contrast to 198 trillion rupiah worth of bills that creditors originally put forward, the report said.
Among the reasons cited by administrators for rejecting some claims were that bills had already been paid or that there was no record of the expenditure. Various claims from sukuk holders got rejected on the grounds they needed to submit them via a trustee.
Once an agreement between the carrier and its creditors is struck, the Indonesian government plans a rights issue in two stages this year to raise additional funds.
In a first step, the Indonesian government will inject 7.5 trillion rupiah via a first rights issue. The second offering will be conducted early in the fourth quarter to allow strategic investors to buy a stake in the carrier. The government plans to keep a 51 per cent share in Garuda.
Indonesia’s national airline Garuda Indonesia will have to pay its creditors a total of 120.5 trillion rupiah ($8.3 billion) if it wants to carry on with its restructuring, Bloomberg News reported. Bankruptcy administrators for Garuda have acknowledged the claims as the beleaguered airline seeks to manage its debts. Documents posted online showed the biggest claim is coming from European plane maker Airbus at more than 7.8 trillion rupiah ($540 million). Indonesia’s state oil company Pertamina, which is looking to recover 7.5 trillion rupiah, also featured on the list labeled “final.” The figures came ahead of a key court date for...
Indonesia’s national airline Garuda Indonesia will have to pay its creditors a total of 120.5 trillion rupiah ($8.3 billion) if it wants to carry on with its restructuring, Bloomberg News reported.
Bankruptcy administrators for Garuda have acknowledged the claims as the beleaguered airline seeks to manage its debts.
Documents posted online showed the biggest claim is coming from European plane maker Airbus at more than 7.8 trillion rupiah ($540 million). Indonesia’s state oil company Pertamina, which is looking to recover 7.5 trillion rupiah, also featured on the list labeled “final.”
The figures came ahead of a key court date for Garuda on June 8 to lay out its restructuring plan. A final vote on the proposal is due to take place later this month.
Only operating a fifth of its fleet
Like many airlines, the Indonesian carrier’s business took a hit due to Covid-19. It is currently running on roughly 20 per cent of its pre-pandemic fleet, curbing its ability to generate operating income.
The acknowledged sum of 120.5 trillion rupiah stands in contrast to 198 trillion rupiah worth of bills that creditors originally put forward, the report said.
Among the reasons cited by administrators for rejecting some claims were that bills had already been paid or that there was no record of the expenditure. Various claims from sukuk holders got rejected on the grounds they needed to submit them via a trustee.
Once an agreement between the carrier and its creditors is struck, the Indonesian government plans a rights issue in two stages this year to raise additional funds.
In a first step, the Indonesian government will inject 7.5 trillion rupiah via a first rights issue. The second offering will be conducted early in the fourth quarter to allow strategic investors to buy a stake in the carrier. The government plans to keep a 51 per cent share in Garuda.
