GMFI Secures Shareholder Approval for Quasi-Reorganisation to Strengthen Capital Structure
Jakarta (ANTARA) - PT Garuda Maintenance Facility Aero Asia Tbk (GMFI), part of the Garuda Indonesia Group, has secured shareholder approval to carry out a quasi-reorganisation as a step to strengthen its capital structure and support business expansion and sustainable growth.
“Shareholders approved the implementation of the quasi-reorganisation as the company’s strategic step to strengthen its capital structure whilst supporting the next phase of business growth,” said GMFI Chief Executive Officer Andi Fahrurrozi in a statement in Jakarta on Tuesday.
GMFI, part of the Garuda Indonesia Group, held an Extraordinary General Meeting of Shareholders (EGMS) at the GMF Hanggar 4 Auditorium.
Andi said the approval covered two agenda items: the implementation of the quasi-reorganisation along with a reduction in authorised, issued, and fully paid-up capital through a reduction in the nominal value of shares, and amendments to the company’s Articles of Association.
The EGMS was attended by 117,160,915,458 votes, representing 93.85 per cent of the total valid voting shares.
He explained that the quasi-reorganisation is an administrative and accounting step taken to restructure the company’s equity by eliminating the retained earnings deficit stemming from accumulated past losses.
The quasi-reorganisation does not involve new funds from shareholders, does not change the share ownership composition, and does not result in dilution for shareholders.
Andi said the quasi-reorganisation is part of the company’s efforts to strengthen its financial foundations.
“The quasi-reorganisation is part of the capital structure strengthening process after the company succeeded in recording consistent performance and profitability recovery over the past few years,” he said.
The step is expected to improve the company’s financial flexibility to support business expansion and long-term growth.
He noted that, based on the company’s audited financial statements as of 31 January 2026, its retained earnings deficit stood at US$512.9 million.
The deficit will be eliminated through the use of share premium of US$299.6 million, differences in transaction values with entities under common control of US$1.1 million, and a reduction in the nominal value of shares without reducing the number of shares in circulation, amounting to US$212.2 million.
The quasi-reorganisation also meets the requirements set by the regulator, including provisions on profitability and business prospects. The company has recorded operating and net profits for three consecutive years, as reflected in its audited annual financial statements.
Throughout the 2023–2025 period, GMFI recorded consistent performance growth. Revenue rose from US$373.21 million in 2023 to US$491.88 million in 2025, an increase of 31.8 per cent.
Over the same period, operating profit rose 118.7 per cent to US$60.57 million, whilst net profit grew 68.4 per cent to US$33.97 million. The positive trend continued into the first quarter of 2026 with a profit for the period of US$6.76 million.
Andi added that the quasi-reorganisation will serve as an important foundation for the company to accelerate various growth initiatives.
“With a healthier capital structure, the company has greater room to strengthen financial resilience, enhance its appeal to investors and strategic partners, and support the various expansion initiatives currently under way,” Andi said.
Going forward, GMFI will focus on improving service quality and operational productivity, developing human resource competencies, strengthening technological capabilities and digital transformation, and expanding the business through increased hangar capacity, reinforcing the Defense & Government and Industrial Solutions segments, and developing the aerostructure manufacturing business line.
“This step is expected to broaden the market, increase competitiveness, and open opportunities for strategic partnerships at both national and global levels,” he said.
The quasi-reorganisation is also expected to improve funding flexibility in supporting the development of business capabilities and capacity, as well as open opportunities for dividend distributions to shareholders in the future, subject to the financial condition, the company’s performance, and applicable laws and regulations.
Following the EGMS approval, the company will proceed with the stages in accordance with prevailing regulations, including a 60-day notification period for creditors.
Should there be no objections, the company will continue the process to obtain approval from the Ministry of Law of the Republic of Indonesia before the quasi-reorganisation can take effect.
“The quasi-reorganisation is an important foundation for GMFI’s transformation towards sustainable growth. With increasingly solid operational fundamentals and a clearer business direction, we are optimistic we can continue to consolidate GMFI’s position as a globally competitive integrated MRO solutions provider,” Andi said.