PT garuda Indonesia plans to raise money through a two-stage rights issue, as the airline hopes to save itself, reports Bloomberg.
After the carrier and its creditors came to an agreement on its debt, the Indonesian government will put US$520 million via a first rights issue.
The announcement comes days before a meeting in Jakarta to decide how much gets imposed on holders of its debt.
Creditors are expected to vote on the carrier's $9.8 billion restructuring plan later this month.
The debt restructuring of the carrier is becoming a test of how far Indonesia's government will go to rescue a state-owned company. Like many airlines, it suffered due to the Covid crisis.
Garuda declared earlier in the year that it wanted investors to take 81 cents on the dollar for their debt.
Failure to reach an agreement with creditors within the 270-day limit would put Garuda in liquidation.
Garuda is running on 20 per cent of its pre-Covid crisis fleet, curbing its ability to generate operating income.
SeaNews Turkey
After the carrier and its creditors came to an agreement on its debt, the Indonesian government will put US$520 million via a first rights issue.
The announcement comes days before a meeting in Jakarta to decide how much gets imposed on holders of its debt.
Creditors are expected to vote on the carrier's $9.8 billion restructuring plan later this month.
The debt restructuring of the carrier is becoming a test of how far Indonesia's government will go to rescue a state-owned company. Like many airlines, it suffered due to the Covid crisis.
Garuda declared earlier in the year that it wanted investors to take 81 cents on the dollar for their debt.
Failure to reach an agreement with creditors within the 270-day limit would put Garuda in liquidation.
Garuda is running on 20 per cent of its pre-Covid crisis fleet, curbing its ability to generate operating income.
SeaNews Turkey
