CNA – Garuda Indonesia’s creditors including Britain’s Rolls-Royce and French planemaker Airbus yesterday voted on a USD9.7 billion debt restructuring proposal, for which the flag carrier is confident of winning enough backing to move forward.
A simple majority from creditors at the meeting is needed to secure a binding agreement for all 501 claimants, which include holders of the firm’s USD500 million sukuk.
The court verified USD9.65 billion worth of claims against Garuda that it will recognise under the process, but that could be challenged right up to the vote.
Garuda fell into financial troubles when the pandemic decimated global air travel. The airline has proposed settling its debt to aircraft lessors and Islamic bond holders with new nine-year bonds and equity worth USD1.15 billion, and offered to banks and state firms a loan maturity extension by 22 years with a 0.1-per -cent interest rate.