TEMPO.CO, Jakarta - The Minister of State-owned Enterprise, Dahlan Iskan, has said that Merpati Nusantara Airlines will not be flying if the company's debt is not converted into stocks. The budget infusion will no longer help the company, he added.
"Restructurization budget of Rp200-400 billion will only help the airlines to fly for a month. Then it will return like this [non operational]," said Minister Dahlan.
Restructurization budget should not be delivered when the company's debt is at its highest. He asked the Commission VI of the House to understand the situation and restructure Merpati's debt in order to keep the government-plate airlines up in the air.
In order to convert the debt into stocks, Merpati needs to convince the creditors to convert the debt into stocks. Moreover, the company should gain permit from the Financial Commission for a restructurization. If the debt is already converted into stocks, Dahlan said that Merpati's balance will be positive due to no debt left.