State-owned Garuda Indonesia has won its government's approval to restructure debts amounting to $1.2 billion, and is to meet with European creditors this week in a bid to finalise a long-awaited repayment schedule on $610 million.
The carrier's spokesman, Pujobroto, says from Jakarta that the Indonesian Government has "in principle agreed to the restructure of the debt of Garuda in the amount of $1.2 billion".
He adds that Garuda's president director, Abdulgani, and other senior managers will meet with European creditors in London to seek final approval on the badly needed restructuring of its biggest single debt obligation.
The carrier owes Export Credit Agencies (ECAs) of France, Germany and the UK $610 million and has not made principal payments since June 1998. The payments amount to $9 million per quarter and cover the financing for the acquisition of Airbus Industrie A330s.Abdulgani said during an interview in January that under a debt restructuring being proposed by financial adviser Deutsche Bank remaining principal and interest payments would be met over a 16-year period, rather than ten years. Pujobroto says the Government has approved these terms.
Source: Flight Daily News
