Garuda aiming to complete restructuring by year-end

Garuda Indonesia is targeting to complete its restructuring within the year but did not commit to a timeline for the process or further steps to pay off its debts. In a 25 June filing to the Indonesia stock exchange (IDX), the flag carrier addressed questions from the exchange on the details and timeline of its restructuring, saying that it “targets [that the] restructuring process can be completed in 2021”. Garuda declined to offer further details on the timeline for the process until it has finalised the restructuring plan. It also adds that it “has not yet decided the path [it will take] to resolve its debt”. Garuda has debt amounting to Rp70t ($4.9b), which is forecast to continue growing by Rp1t each month amid the pandemic, a House of Representatives member told Indonesia’s parliament on 3 June. Garuda says that controlling shareholder, the Ministry of State Owned Enterprises, has “[committed its] full support for [Garuda’s] debt restructuring process through [the] establishment of the company’s restructuring acceleration team”. The team was formed to handle the airline’s negotiations with lessors.<br/>