GIAA - PT. Garuda Indonesia (Persero) Tbk

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JAKARTA. The Ministry of State-Owned Enterprises (BUMN) targeted the reduction of debt values or the haircut of PT Garuda Indonesia Tbk (GIAA) to reach USD 7.18 billion, equal to IDR 102.02 trillion. It brought the debt down from USD 9.75 billion to USD 2.57 billion.

The debt reduction target had been recently announced by GIAA in the debt restructuring proposal to its creditors. The Vice Minister II of the BUMN Ministry, Kartiko WIrjoatmodjo, claimed that Garuda Indonesia’s financial restructuring process is through eliminating negative equity of USD 2.82 billion.

Wirjoatmodjo also explained that by Q3 2021, GIAA recorded a debt worth USD 9.75 billion, equivalent to IDR 138.53 trillion. Thus, this amount of debt would be cut to USD 2.57 billion or IDR 36.5 trillion.

With this significant debt cutdown, GIAA’s assets would massively shrink from USD 6.92 billion to USD 2.75 billion. “The essential key of Garuda’s restructuring is the creditors’ approval. The shareholders won’t be able to act without the creditors’ approval. We are highlighting the fact that Garuda’s fate lies not only on its shareholders but also its creditors,” Wirjoatmodjo firmly stated during the Public Hearing Meeting in Commission VI of DPR yesterday (9/11).

Furthermore, Wirjoatmodjo specified GIAA’s debts. They comprise the debt to its lessors of USD 6.35 billion, bank debt of USD 867 million, and its convertible bond, sukuk, and asset-backed collective investment contract (KIK-EBA) debts of USD 630 million. There are also BUMN vendor debts of USD 595 million, private vendor debt of USD 317 million, and other liabilities of USD 751 million.

Through this restructuring process, Garuda’s liabilities would deplete to USD 2.57 billion. It would include USD 1,025 billion of the newly transferred debt plus its zero-coupon bond, USD 609 million of other liabilities, and USD 937 million of lessor debt. (AM/ZH)