Garuda mulls restructuring debt

JAKARTA, 15 September 2021: Garuda Indonesia says it will consider restructuring its debt after losing a lawsuit filed by an aircraft leasing firm in the London Court of International Arbitration, Antara news agency reported earlier this week.

Garuda Indonesia president director Irfan Setiaputra suggested one of the avenues was to consider restructuring schemes and other supporting alternative strategies,” Setiaputra revealed in an official statement at the weekend.

He assured passengers that the airline would ensure that all “aspects of flight operations continue to run normally despite it facing several lawsuits from lessors.”

“We will fully respect and respond wisely to the matters that LCIA has determined in its authority as a resolution agency for international arbitration disputes,” he said.

Currently, Garuda Indonesia is working to resolve lawsuits with a number of lessors through negotiations on aircraft lease contracts, with 31 lease firms, he concluded.

According to a Nikkei Asia report, last July, Garuda Indonesia posted a net loss of USD2.4 billion in 2020, with its auditor raising concerns over the continuity of the Southeast Asian country’s flagship airline.

The net loss was Garuda’s biggest since at least 2005, the oldest available data on Quick-Factset, and marks a staggering increase from the USD38.9 million loss it reported the previous year.

(Source: Antara News)