Garuda ends debt restructuring

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.