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Garuda Indonesia requests third extension of restructuring period
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A Garuda Maintenance Facility (GMF) AeroAsia worker is pictured in front of a Garuda Indonesia aircraft at Soekarno-Hatta International Airport near Jakarta on Jan. 21. (Reuters/Willy Kurniawan)
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aruda Indonesia has once again requested more time for its supervised debt restructuring, as the national flag carrier believes it will not be possible to complete the process by the May 20 deadline.
Garuda filed the request with the Central Jakarta District Court, the court that granted the airline a suspension of debt payment obligations (PKPU) on Dec. 9 of last year. Since then, Garuda has proposed and been granted two PKPU extensions of 60 days each, one in January and the second in March. It is now asking for another 30 days.
The company said the verification of claims was ongoing and that it had yet to reach an agreement with creditors on its “reconciliation plan”.
The airline also claimed the extension accommodated requests from some creditors.
“We believe the PKPU process should be carried out carefully […] as the process aims to afford parties a win-win solution,” Garuda Indonesia CEO Irfan Setiaputra said in a statement.
Read also: New Garuda rescue plan seeks $6 billion debt cut
As part of the PKPU process, Garuda and its creditors must come to an agreement on the company’s restructuring plan within 270 days of the court's granting of the suspension. A failure to do so would result in the court declaring the company bankrupt.
