Image: Reuters Berita 24 English - Garuda Indonesia 's creditors, including Rolls-Royce of the United Kingdom and Airbus of France, wi...
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| Image: Reuters |
Berita 24 English - Garuda Indonesia's creditors, including Rolls-Royce of the United Kingdom and Airbus of France, will vote on a $9.7 billion debt restructuring package on Friday, which the flag carrier is optimistic will receive enough support to move forward.
To reach a binding agreement for all 501 claimants, including holders of the firm's $500 million sukuk, a simple majority of creditors must attend the meeting.
The court confirmed that 142.42 trillion rupiah ($9.65 billion) in claims against Garuda will be recognised under the process, but this could be challenged up until the vote.
When the pandemic ravaged worldwide air travel, Garuda ran into financial difficulties.
The airline has proposed repaying aircraft lessors and holders of Islamic bonds with fresh 9-year bonds and equity worth $1.15 billion, as well as offering banks and state-owned enterprises a 22-year loan maturity extension with a 0.1 percent interest rate.
CEO Irfan Setiaputra told a news conference on Thursday that he was certain the plan will pass, adding that Airbus and engine manufacturer Rolls-Royce had previously endorsed the plans.
On Thursday, he stated, "We are fairly optimistic that the (support from) lessors and creditors is already at a level above 50%."
According to a court document, Rolls-Royce and Airbus submitted claims to Garuda for 9.9 trillion rupiah and 7.8 trillion rupiah, respectively.
(1 US dollar = 14,765.0000 rupiah)
