Indonesian court turns down debt restructuring request against Garuda

Workers clean the body of a Garuda Indonesia Airbus A320 aircraft inside Hangar 4 of PT Garuda Maintenance Facility (GMF) Aero Asia at Soekarno-Hatta airport in Jakarta.

An Indonesian court on Thursday rejected cargo company PT My Indo Airlines’ (MYIA) request to restructure the debt of PT Garuda Indonesia as it failed to meet legal requirements, its lawyer said.

MYIA, a business partner of Garuda, brought Garuda to court in July after Garuda failed to fulfil its obligation to the cargo company.

Garuda Indonesia, hurt by the pandemic’s impact on air travel, reported a loss of around $2 billion in 2020 with its short-term liabilities of $3.4 billion.

“There are matters that needed to be considered further because (the debt) is not an amount that is simple to prove,” Asrul Tenriaji Ahmad, a lawyer for MYIA, told Reuters on Thursday.

He said the debt stands despite the court ruling.

“Looking forward, Garuda will continue to focus on restructuring its business and operational obligations, as well as ensuring normal flight operations for passenger and cargo transportation,” Garuda said in a statement following the ruling.

To improve its finances, Garuda has said it has discontinued unprofitable international routes and aims to focus on domestic operations. It has also returned a number of planes to lessors as it seeks to slim down its fleet.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.