Garuda ends debt restructuring TANTRI YULIANDINI The Jakarta Post Jakarta

National flag carrier PT Garuda Indonesia had finalized its US$1.51 billion debt restructuring and could now concentrate on its privatization plans, a senior executive said.

"We have reached an agreement with our creditors to reschedule loans, which had been overdue three years ago for another eight years," Garuda's president and chief executive officer Abdulgani said in New York on Tuesday (Wednesday Jakarta time).

Abdulgani said that with the finalization of Garuda's debt restructuring, the airline would now be able to concentrate on its privatization plans slated in 2003.

The airline's vice president for corporate communications Pujobroto said that of the $1.51 billion debt, some $610 million is owed to a consortium of French, British, and German creditors grouped under the European Credit Agency (ECA) for the lease of A330 airplanes. The debt would be rescheduled for 2010.

Garuda had also signed agreements with state Bank Mandiri and airport operators Angkasa Pura I and II to convert a $141 million debt into convertible bonds, he said.

Pujobroto told the Post that the last stage of the restructuring process had been reached last week when 98 percent of Garuda's unsecured creditors agreed in Singapore to restructure some $340 million.

"The remaining $419 million have been covered by the government in return for participation equity," Pujobroto added.