Garuda finalizes debt restructuring<\/p>\n
JAKARTA (JP): National flag carrier PT Garuda Indonesia had
\nfinalized its US$1.51 billion debt restructuring and could now
\nconcentrate on its privatization plans, a senior executive said.<\/p>\n
"We have reached an agreement with our creditors to reschedule
\nloans, which had been overdue three years ago for another eight
\nyears," Garuda's president and chief executive officer Abdulgani
\nsaid in New York on Tuesday (Wednesday Jakarta time).<\/p>\n
Abdulgani said that with the finalization of Garuda's debt
\nrestructuring, the airline would now be able to concentrate on
\nits privatization plans slated in 2003.<\/p>\n
The airline's vice president for corporate communications
\nPujobroto said that of the $1.51 billion debt, some $610 million
\nis owed to a consortium of French, British, and German creditors
\ngrouped under the European Credit Agency (ECA) for the lease of
\nA330 airplanes. The debt would be rescheduled for 2010.<\/p>\n
Garuda had also signed agreements with state Bank Mandiri and
\nairport operators Angkasa Pura I and II to convert a $141 million
\ndebt into convertible bonds, he said.<\/p>\n
Pujobroto told the Post that the last stage of the
\nrestructuring process had been reached last week when 98 percent
\nof Garuda's unsecured creditors agreed in Singapore to
\nrestructure some $340 million.<\/p>\n
"The remaining $419 million have been covered by the
\ngovernment in return for participation equity," Pujobroto
\nadded.(tnt\/dja)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-finalizes-debt-restructuring-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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