Flag carrier Garuda Indonesia mulls court-led debt restructuring

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.

Flag carrier Garuda Indonesia, which last week defaulted on a $500 million sukuk, is considering a court supervised debt restructuring process and is in talks to slash its fleet size, company executives said on Monday.

A deputy minister of state-owned enterprises said earlier this month the state-controlled airline’s total debt is about $4.5 billion and it runs a $100 million negative cashflow a month due to high costs and low revenues during the coronavirus pandemic.

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