Creditors approve Garuda Indonesia restructuring plan

Share

Creditors approve Garuda Indonesia restructuring plan

Garuda Indonesia has received the green light from its creditors to move forward with its restructuring plan, according to a Reuters report.

The report quotes officials as saying that out of 95% of creditors who participated in the voting, the vast majority of creditors approved the plan to restructure the airline’s $9 billion debt. The agreement is set to be ratified by the Indonesian court.

AeroTime has asked Garuda Indonesia for a comment.

Garuda Indonesia filed for debt restructuring in December 2021.

The airline had been suffering from financial trouble prior to the COVID-19 pandemic but these were accelerated as the global health crisis wreaked havoc on the aviation industry.

During the first three months of 2021, Garuda Indonesia reported a net loss of $1.7 billion, a notable increase compared to a net loss of $1.1 billion in 2020.

The negative financial outcome was attributed to the ongoing pandemic followed by stringent travel restrictions, which “has caused a significant reduction in air travel and has a major adverse impact on the Group’s operations and liquidity”.

The airline has not yet released its 2021 full year and Q1 2022 financial reports.

Share