Troubled flag carrier PT Garuda Indonesia put off the payment on its Islamic debt once again, highlighting its financing crunch as the firm tries to avoid bankruptcy, Bloomberg News reported. The Southeast Asian airline, struggling as the pandemic depresses air travel worldwide, said it “will continue to defer the periodic distribution amount due June 3,” in a filing to the Singapore stock exchange on Thursday. The state-owned company missed the distribution payment on a $500 million sukuk on June 3, and a 14-day grace period ended on Thursday.
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Indonesia
Creditors of PT Sri Rejeki Isman, Indonesia’s biggest listed clothing firm, have submitted about 20 trillion rupiah ($1.4 billion) of outstanding claims as part of a debt-restructuring process, Bloomberg News reported. The claims include about 700 billion rupiah submitted by secured creditors and around 19 trillion rupiah from unsecured creditors as of June 10, according to Alfin Sulaiman, a member of an administrator team appointed by Indonesia’s Semarang commercial court. Verification is ongoing and the final amount will be released soon, Sulaiman said on Friday.
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National flag carrier Garuda Indonesia will seek a suspension of debt payments to creditors and lessors under a 'standstill agreement' in order to avoid bankruptcy, a senior government official said on Thursday, Channel News Asia reported. The coronavirus pandemic has put the state-controlled airline's finances under serious strain with a negative cashflow of about US$100 million a month and ballooning debt, Kartika Wirjoatmodjo, Indonesia's deputy minister of state-owned enterprises (SOEs), told a parliamentary hearing.
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Indonesia’s flag carrier PT Garuda Indonesia confirmed it is taking steps to restructure its debt and revamp its business in order to stay afloat amid the pandemic, Bloomberg News reported. The airline is negotiating terms with plane lessors and is talking with banks and business partners to restructure its loans, according to a stock exchange filing submitted late Thursday. The coronavirus outbreak has forced dozens of airlines and other aviation businesses to restructure or seek bankruptcy protection.
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PT Garuda Indonesia needs to completely restructure its business, potentially reducing the number of planes it operates to less than half its main fleet as the airline seeks to survive the crisis wrought by the pandemic, its president told staff last week, Bloomberg News reported. “We have to go through a comprehensive restructuring, a total one,” President Director Irfan Setiaputra said in an address to staff on May 19, according to a recording heard by Bloomberg.
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Indonesia's exports racked up their strongest rise in 11 years in April, boosted by a surge in prices of key commodities such as palm oil and copper, though the unexpectedly robust figure is not expected to change the central bank's policy settings, Reuters reported. The resource-rich nation's shipments rose 51.94% on a yearly basis to $18.48 billion, marking the sharpest increase since 2010 and beating a forecast 41% rise in a Reuters poll. The export value was the highest since August 2011.
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Indonesia’s biggest listed clothing firm Sri Rejeki Isman has appointed Helios Capital and Assegaf Hamzah & Partners to represent the company in its debt restructuring process, Bloomberg News reported. The company, known as Sritex, has been trying to extend a dollar loan’s maturity by two years to January 2024. The loan was announced in 2019 and had a deal size of $350 million, according to data compiled by Bloomberg.
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PT MNC Investama, an Indonesian media and property conglomerate that has a tie-up with former President Donald Trump’s company, said it received court approval for its debt plan after agreeing to lower its standalone borrowings by 65%, Bloomberg News reported. The approval by the High Court of Singapore paves the way for the company founded by tycoon Hary Tanoesoedibjo to issue new notes and shares for investors of its distressed bonds as it restructures its debt. Under the agreement, MNC Investama will cap its debt at $81 million, it said.
The economic crisis brought about by the COVID-19 outbreak has hit state-owned enterprises (SOEs) in the energy, transportation and infrastructure sectors, a top government official has said, The Jakarta Post reported. Deputy SOEs Minister Kartika “Tiko” Wirjoatmodjo said SOEs in the energy sector, such as electricity giant PLN and oil and gas company Pertamina, had suffered severe losses amid low demand during the health crisis.
The head of Indonesia’s flag carrier said better terms on aircraft loans will help it avoid falling into bankruptcy as the nation grapples with surging coronavirus cases, Bloomberg News reported. “We discussed the risks, the benefits, the pluses and minuses and the company’s leadership decided against it,” PT Garuda Indonesia President Director Irfan Setiaputra said when asked in a Sept. 18 interview about considering bankruptcy proceedings.