Image: Reuters Berita 24 English - Garuda Indonesia 's chief executive has requested that a vote on the flag carrier's debt restruc...
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| Image: Reuters |
Berita 24 English - Garuda Indonesia's chief executive has requested that a vote on the flag carrier's debt restructuring proposal be postponed for two days, to June 17, according to a statement released late Monday.
On Wednesday, Garuda creditors were scheduled to vote on the restructuring plan.
In a statement, CEO Irfan Setiaputra said that a delay was needed to finalise administrative processes and harmonise stakeholder comments on the reorganisation proposal.
After a vendor petitioned the court over unpaid payments, Garuda began the court-supervised restructuring process on Dec. 9.
According to one of the court-appointed administrators, the suggested vote postponement will be discussed with the supervising judge.
"The administrators will vote in accordance with the debtor's readiness for its restructuring proposal," Martin Patrick Nagel told Reuters.
Garuda has proposed to replace $1.13 billion in liabilities owed to lessors and Islamic bondholders with new bonds and equity.
Garuda's latest validated claims totaled 120.5 trillion rupiah ($8.21 billion) under the restructuring process.
A majority of the holders of the airline's 2 trillion rupiah ($136.26 million) asset-backed securities "KIK-EBA Mandiri GIAA 01" agreed on a tenor extension up to 10 years and a new payment schedule on Tuesday, the airline said.
The five-year securities were issued in 2018 and securitized revenue rights from Garuda's ticket sales on the Jeddah-Medina route.
(1 rupiah = 14,678.0000)
