Garuda begs sukuk creditors to relax issue terms

Garuda Indonesia wants to amend conditions of its 2015 US$500m global sukuk issue after its financial performance failed to meet the issue's original terms. The carrier wants to amend conditions stating that its consolidated total equity shall not fall below $500m, and that its consolidated debt to equity ratio shall not exceed 3 times. The carrier also wants to change the definition of "consolidated total debt" to exclude references to "indebtedness under a finance or capital lease", and to waive any dissolution or breach of terms and conditions. Garuda recorded a net loss of $283.8m in the first half of the year, attributable to a $138.3m loss due to tax amnesty programme expense, and $145.5m to losses from operations. Net losses from operations amounted to $145.5m for the 6 months. <br/>