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.
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.
