Garuda unlikely to breach debt covenants as outlook brightens
Garuda Indonesia is optimistic that it will not breach key debt covenants as its financial situation is looking stronger this year. The carrier says that after it restated its 2018 financial results, its capital level for the year fell to US$730m, forcing it to seek a waiver from Export Development Canada for breaching the $800m minimum required under a debt covenant. The loan aided its acquisition of Bombardier CRJ 1000s and caps the carrier's debt-to-equity ratio at 2.5x. During Q1 of 2019, however, its capital level rose to $791m. It has not yet disclosed its accounts for Q2. Finance director Fuad Rizal said that other creditors have agreed to the debt covenant proposals the airline had made, without providing any other details. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-01/sky/garuda-unlikely-to-breach-debt-covenants-as-outlook-brightens
https://portal.staralliance.com/cms/logo.png
Garuda unlikely to breach debt covenants as outlook brightens
Garuda Indonesia is optimistic that it will not breach key debt covenants as its financial situation is looking stronger this year. The carrier says that after it restated its 2018 financial results, its capital level for the year fell to US$730m, forcing it to seek a waiver from Export Development Canada for breaching the $800m minimum required under a debt covenant. The loan aided its acquisition of Bombardier CRJ 1000s and caps the carrier's debt-to-equity ratio at 2.5x. During Q1 of 2019, however, its capital level rose to $791m. It has not yet disclosed its accounts for Q2. Finance director Fuad Rizal said that other creditors have agreed to the debt covenant proposals the airline had made, without providing any other details. <br/>
