Garuda Indonesia meets creditors in Singapore

Jakarta (Antara News) - Flag carrier PT Garuda Indonesia said that it had met creditors, floating rate notes holders in particular, in Singapore on Friday.

"Apart from explaining the company`s financial performance and operation, we also reported our plans and debt restructuring," Garuda president Emirsyah Satar said in a press release.

In line with the debt restructuring, Garuda continues to pay consistently the interest of the debt, including the payment to airplane leasers.

"The government has agreed with Garuda`s debt restructuring to strengthen its financial condition by reducing its debt burden," he added.

The government, he said, had agreed to convert Garuda`s debt into PT Angkasa Pura I and PT Ankasa Pura II amounting to US$36 million as capital participation.

"The House of Representatives has also agreed to provide the government fund to Garuda amounting to Rp1 trillion within two years to support its operations but not to pay debts," he said.

The government has stated not to give assurance to Garuda`s creditors. (*)
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