Garuda Indonesia offers to settle debt with $1.13 bln of new bonds, shares
Indonesia’s state airline Garuda Indonesia has offered to replace its liabilities to lessors and Islamic bondholders with new bonds and equity worth $1.13b, it told creditors in a meeting overseen by a Jakarta court on Thursday. Garuda proposed that lessors, vendors and other creditors take a large cut and replace the remaining amount with $800m worth of new bonds and $330m worth of shares, a company presentation at the court showed. The offer is directed at lessors, plane maintenance vendors, aircraft makers and holders of its Islamic bonds, to whom Garuda owes more than 255m rupiah ($17,513.74) each. The new bonds will have 10-year maturity with a 6.5% coupon per annum in cash. Garuda declined to comment on how much debt in total it will seek to settle through this scheme. According to the latest verified claims list, lessors made up the biggest chunk of Garuda’s outstanding liabilities at 82.73t rupiah ($5.68b) or nearly 70% of the total at 120.5t rupiah. The list has yet to include claims by 43 creditors that have not been verified, a court-appointed administrator told the meeting. Garuda defaulted on $500m Islamic or sukuk bonds in June, 2021. The airline has also proposed to settle its debts to banks and other state companies by extending the loans’ maturity by 22 years and offering a 0.1% interest rate per annum.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-06-10/sky/garuda-indonesia-offers-to-settle-debt-with-1-13-bln-of-new-bonds-shares
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Garuda Indonesia offers to settle debt with $1.13 bln of new bonds, shares
Indonesia’s state airline Garuda Indonesia has offered to replace its liabilities to lessors and Islamic bondholders with new bonds and equity worth $1.13b, it told creditors in a meeting overseen by a Jakarta court on Thursday. Garuda proposed that lessors, vendors and other creditors take a large cut and replace the remaining amount with $800m worth of new bonds and $330m worth of shares, a company presentation at the court showed. The offer is directed at lessors, plane maintenance vendors, aircraft makers and holders of its Islamic bonds, to whom Garuda owes more than 255m rupiah ($17,513.74) each. The new bonds will have 10-year maturity with a 6.5% coupon per annum in cash. Garuda declined to comment on how much debt in total it will seek to settle through this scheme. According to the latest verified claims list, lessors made up the biggest chunk of Garuda’s outstanding liabilities at 82.73t rupiah ($5.68b) or nearly 70% of the total at 120.5t rupiah. The list has yet to include claims by 43 creditors that have not been verified, a court-appointed administrator told the meeting. Garuda defaulted on $500m Islamic or sukuk bonds in June, 2021. The airline has also proposed to settle its debts to banks and other state companies by extending the loans’ maturity by 22 years and offering a 0.1% interest rate per annum.<br/>
