HomeNewsVideos

Garuda CEO: ‘Impossible’ to default on US$500 million debt

24 March 2020 11:07

JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) will not default on its US$500 million notes due on June 3, 2020 and is currently discussing refinancing options with several local and foreign banks, said CEO Irfan Setiaputra.

“For sure it is impossible for us to default in this note. We are in discussions with several banks outside Indonesia as well as several state-owned banks in Indonesia,” Mr Setiaputra said in an interview with Bloomberg Television, Friday (20/3).

“The progress of the discussion is quite positive and we are finalising the term sheets with them. We do hope that we are going to do the refinancing rather than restructuring of this debt.”

The state-owned airline is among the carriers most heavily affected by the coronavirus disease (Covid-19) pandemic, as most countries put restrictions on international travels. Several airlines including the United Arab Emirates’ Emirates and Etihad Airways have even gone as far as suspending almost all passenger flights in the light of the outbreak.

Garuda’s stock price opened at Rp 150 at the start of the first trading session on Tuesday (24/3), having stagnated from the previous day’s closing. According to Bloomberg data, it has slumped 64% since Mr Setiaputra was appointed as CEO in January. (MS)

© 2024 - IDN Financials - All Rights Reserved.