Govt Requires Merpati Investors to Settle Airline Debt
18 December 2014 02:26 WIB
TEMPO.CO, Jakarta - The government is still looking for ways to rescue state carrier PT Merpati Nusantara Airlines. SOE Minister Rini Soemarno said the government is considering to either shut down the airline or look for potential investors willing to settle its Rp7.5 trillion debt.
Rini said it is not easy to find investors willing to bet their money on Merpati, as the debt-settlement is a very heavy requirement.
Potential investors tend to shy away from Merpati as the carrier's debt has exceeded its assets value. "Even if investors take over Merpati's assets, they will still come up short," Rini said.
As of January 2014, Merpati owes Rp7.6 trillion to state-owned enterprises, private companies and the government. Since February, the airline stopped flying due to financial difficulties and the Ministry of Transportation has suspended its flying license.
In August, Merpati's management filed for a delay to pay its debt to over 1,000 private creditors, hoping to be able to restructure Rp2.2 trillion of debt.
NURIMAN JAYABUANA | FAIZ NASHRILLAH
