Garuda Indonesia Needs US$1bn to Pay Debts
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4 November 2021 18:16 WIB
TEMPO.CO, Jakarta - Flag carrier Garuda Indonesia (IDX: GIAA) requires an additional fund of US$1 billion or around Rp14.32 trillion to pay off its debts and stay in business. This was revealed by the SOE Ministry's second deputy, Kartika Wirjoatmodjo.
According to Kartika, the airline is in talks with creditors about restructuring US$6.3 billion worth of debts.
The negotiations, Kartika said, are expected to be completed in the second quarter of 2022. The company has prepared a number of options for the debt negotiations, including switching to instruments such as mandatory convertible bonds or no-coupon bank loans.
Tiko explained that his ministry is also negotiating with multiple parties. And the preferences of each party also vary.
"I must underline that the government does not want to bankrupt Garuda. What we are doing is finding ways to resolve debt problems, either in or off court," he said, on Wednesday, November 3.
As of June this year, Garuda's financial statements showed an equity of negative US$2.8 trillion.
Read: Tourism Minister Calls for Efforts to Salvage Garuda Indonesia
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