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Indonesia’s Garuda given debt restructuring extension

CNA – A Jakarta court has for the third time extended flag carrier Garuda Indonesia’s debt restructuring deadline by another month, a court-appointed curator for the case said yesterday.

Garuda started the court-led restructuring process on December 9, after a vendor petitioned the court over unpaid bills.

It has repeatedly requested more time to negotiate restructuring terms and verify USD13.8 billion of claims against it.

The state-controlled airline has said the claims were bigger than the USD9.8 billion it has in its books and that it would seek to cut its total liabilities to USD3.7 billion under the process.

Martin Patrick Nagel, one of the curators, in a text message to the media said the new deadline was June 20.

It was unclear how many claims Garuda still has to verify.

A plane belonging to Garuda Indonesia is seen on the tarmac of Terminal 3, Soekarno-Hatta International Airport near Jakarta, Indonesia. PHOTO: CNA