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Garuda Indonesia seeks new investors after escaping bankruptcy
National flag carrier Garuda Indonesia is seeking investors to aid its new business plan after the airline gained creditors' support to restructure its Rp 142 trillion (US$9 billion) of liabilities.
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Touching down: A Garuda Indonesia Airbus A330 lands at Sultan Iskandar Muda International Airport in Blang Bintang, Aceh, on July 13. (AFP/Chaideer Mahyuddin)
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ational flag carrier Garuda Indonesia is seeking new investors to aid its new business plan after the airline gained creditors' support to restructure its Rp 142 trillion (US$9 billion) of liabilities.
The State-Owned Enterprises (SOEs) Ministry has been in talks with several foreign airline companies and financial investors to invest in Garuda, Kartika Wirjoatmodjo, Deputy SOEs Minister said on Tuesday.
To accommodate new shareholders, the government plans to lower its ownership but to no less than 51 percent after the airline raises funds via a rights issue in the capital market in the fourth quarter of this year.
He said investors would consider Indonesia’s position as one of the largest passenger airline markets in the world as well as the fact that Garuda will have a better financial performance in the future.
“We know many airlines were acting as hub players, as they did not have a domestic market. This could be a good combination, as we have a strong domestic market,” Kartika told reporters during a press briefing.
Read also: Creditors approve Garuda's restructuring plan
Creditors approved Garuda’s restructuring proposal on June 17 after months of negotiation to save the debt-laden airline from bankruptcy. The restructuring allows Garuda to halve its liabilities to just $5.1 billion.
