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Indonesia's Garuda airline enters restructuring to avoid bankruptcy

Garuda Indonesia has entered a court-supervised restructuring process as the debt-ridden airline tries to rescue itself from bankruptcy.
Indonesia's Garuda airline enters restructuring to avoid bankruptcy ảnh 1Garuda Indonesia has entered a court-supervised restructuring process. (Photo: Financial Times)
Hanoi (VNA) - Garuda Indonesia hasentered a court-supervised restructuring process as the debt-ridden airlinetries to rescue itself from bankruptcy.

The new attempt to save the Indonesian flag-carrierbegan after a Jakarta court granted a debt petition filed against the airlineby one of its creditors on December 9, the AFP news agency reported.

The ruling gave Garuda and its creditors 45 days tosubmit a debt restructuring proposal. The period can be extended by up to 270days.

Garuda said the court's suspension of debt paymentobligations would give it a solid framework to complete negotiations for thedebt-restructuring process.

Garuda, 60 percent owned by the state, has sufferedmassive losses during the COVID-19 pandemic.

It posted a net loss of 2.4 billion USD last year, andanother net loss of nearly 1.7 billion USD from January to September this year.

The airline said in June it had grounded two-thirds ofits fleet of 142 jets, due to travel restrictions and declining demand.

In October last year it announced it would lay off 700employees, about 10 percent of its workforce, while many others have been onunpaid leave.

Garuda finalized a restructuring proposal last monthand is in discussion with creditors and lessors to reduce its liabilities to 3.7billion USD, from 9.8 billion USD./.
VNA
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