Garuda Indonesia Prepares 50 Million US Dollars For Repayment Of Debt And Sukuk Securities

PT Garuda Indonesia Tbk (GIAA) announced plans for corporate action to partially repay debt securities and sukuk through an offer tender scheme to debt securities holders to debt securities and sukuk holders who are creditors of Garuda Indonesia in the process of Postponing Debt Payment Obligations (PKPU).

As announced on December 1, 2023, through the Disclosure of Information on the Singapore Exchange (SGX) page, the participation period in the tender offer will last until December 15, 2023, and the partial repayment is planned to be held on December 21, 2023.

In the plan to partially repay the Debt and Sukuk securities, Garuda Indonesia has allocated a maximum of 50 million US dollars for the principal value (principal).

Meanwhile, this amount does not include payment of paid interest or payment of the amount of paid periodic distribution whose value will be determined later.

President Director of Garuda Indonesia, Irfan Setiaputra, revealed that the allocation of funds came from the company's internal cash, in line with the Company's cash management policy, one of which was prioritized to settle the Company's obligations to creditors.

Irfan said that the plan to partially repay debt and sukuk securities was part of the Company's proactive steps to improve equity performance, through actively managing assets, liabilities and equity to optimize the effectiveness of the Company's cash flow profile and fundamentals of the Company's operating performance.

"This corporate action is also a sustainable representation of the Company in ensuring that the process of completing obligations to creditors can become more agile and prudent. This kind of repayment has also taken into account the current market volatility, including the increase in interest rates in the US dollar currency market," he explained in an official statement, Monday, November 4.

Furthermore, Irfan conveyed that more technical matters related to the partial payment mechanism could be referred to the disclosure of information on SGX.

"The corporate steps that we carried out ahead of the closing of 2023 also represent the Company's commitment to continue to move adaptively in optimizing fundamental improvement measures for operating performance, by paying close attention to macroeconomic outlooks in order to maintain the momentum of restoring Company performance," concluded Irfan.