Home Finance Court ratifies Garuda Indonesia’s $9 bln debt restructuring deal

Court ratifies Garuda Indonesia’s $9 bln debt restructuring deal

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A employee walks on a crane as a Garuda Indonesia’s plane is parked on the Garuda Upkeep Facility (GMF) AeroAsia, at Soekarno-Hatta Worldwide airport close to Jakarta, Indonesia, January 21, 2022. REUTERS/Willy Kurniawan

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JAKARTA, June 27 (Reuters) – A court docket overseeing airline Garuda Indonesia’s debt restructuring negotiations on Monday ratified a cope with collectors to repackage greater than $9 billion of the service’s debt, a court docket administrator instructed Reuters.

The deal, which the state-carrier secured after most collectors backed its restructuring proposal on June 17, was as a consequence of be ratified final week, however was delayed after objections by two lessors on claims.

Underneath the deal, many of the collectors must take a debt haircut, or write-down, and have the rest of their debt repackaged into new bonds and shares, whereas some others will see their mortgage tenure prolonged with none haircut.

Like most airways on the planet, Garuda’s revenues had been battered by the COVID-19 pandemic, forcing the corporate to enter a debt restructuring course of in December 2021.

(This story corrects to collectors in paragraph 3, not debtors)

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Reporting by Stefanno Sulaiman; Modifying by Gayatri Suroyo and Ed Davies

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