APSN Banner

Garuda Indonesia requests 30-day debt payment obligation extension

Tempo - May 11, 2022

Francisca Christy Rosana, Jakarta – Flag carrier Garuda Indonesia has filed a request for a 30-day extension to its suspension of debt payment obligation (PKPU) at the Jakarta District Court. Garuda president director Irfan Setiaputra on Tuesday evening said that it is meant to reach a mutual agreement between the company and all creditors, including lessors.

"PKPU is meant to reach a win-win solution for all stakeholders, which we believe needs to go through this process must be carried out carefully and with the principle of prudence," said Irfan on May 10.

Irfan said that the company took into account the ongoing claim verification. In addition, Garuda is considering a reconciliation plan which is still being discussed with the company's creditors. The company is also accommodating requests from several creditors.

Garuda, said Irfan, hopes that the application for the extension can be utilized as well as possible before finalizing the peace plan and completing the PKPU process. This most recent PKPU extension process will be the last extension application.

He guarantees that flight operations for both commercial and cargo will run normally during this process as he claims the company's first-quarter performance in 2022 has shown signs of improvement due to relaxed travel restriction requirements, which he said motivated people to travel by air.

Previously, the panel of judges of the Central Jakarta District Court had extended the permanent PKPU process for Garuda Indonesia for 60 days. Originally, the PKPU decision would be made on May 20, while the creditors' vote would take place on May 17.

Source: https://en.tempo.co/read/1590480/garuda-indonesia-requests-30-day-debt-payment-obligation-extensio