'Technically bankrupt' Indonesian airline Garuda moves to restructure $13.4b debt

Garuda Indonesia is planning a restructuring which is expected to shrink its debt to US$3.69 billion.
Garuda Indonesia is planning a restructuring which is expected to shrink its debt to US$3.69 billion.PHOTO: EPA-EFE

JAKARTA - Indonesia's flagship carrier Garuda Indonesia is negotiating with its creditors to restructure its US$9.78 billion (S$13.4 billion) debt, with the government indicating that chances of an immediate bailout are slim.

The airline, plagued by a wide range of internal issues from corruption to excessive aircraft leases that have been worsened by the Covid-19 pandemic, is planning a restructuring which is expected to shrink its debt to US$3.69 billion, according to the Ministry of State-Owned Enterprises (SOEs).

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