Garuda Indonesia to seek suspension of debt payments to avoid bankruptcy.
National flag carrier Garuda Indonesia will seek a suspension of debt payments to creditors and lessors under a ‘standstill agreement’ in order to avoid bankruptcy, a senior government official said on Thursday, Reuters reported.
The coronavirus pandemic has put the state-controlled airline’s finances under serious strain with a negative cashflow of about $100 million a month and ballooning debt, Kartika Wirjoatmodjo, Indonesia’s deputy minister of state-owned enterprises (SOEs), told a parliamentary hearing.
The carrier needed a “fundamental restructuring” to reduce its debt to around $1 billion to $1.5 billion, from $4.5 billion currently, to continue as a going concern, he said.
“We are appointing legal and financial consultants to begin this process and we must immediately conduct a moratorium (of debt repayments) or a standstill in the near term,” Kartika said.
Related Topics
Amsterdam Schiphol to Reduce Airport Fees by 10% for Airlines to Mitigate Financial Impact of Middle East Conflict
TAP Air Portugal Awarded “Best Stopover Program” for Eighth Consecutive Year
Lufthansa’s First Airbus A380 Equipped with New Business Class Departs for Los Angeles
ITA Airways Expands Intercontinental Network with New Direct Route Between Rome and Santo Domingo
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.