Garuda Indonesia Proposes Restructuring Scheme To Lessors And Creditors, Here's Its Contents

Irfan Setiaputra, President Director of Garuda Indonesia. (Photo: personal, DI: Raga/VOI)

JAKARTA - PT Garuda Indonesia (Persero) Tbk ("Garuda") has submitted a restructuring proposal scheme to lessors and creditors as part of the Company's ongoing optimization efforts to restore performance. Furthermore, Garuda invites all lessors and creditors to review this comprehensive restructuring scheme as a basis for considering the restructuring process that will be carried out.

President Director of Garuda Indonesia Irfan Setiaputra said that this step marked the acceleration of the restructuring and recovery process for Garuda. "This proposal outlines Garuda's long-term business plan as well as a number of offers in managing our business obligations with lessors, creditors and key suppliers."

"Submission of this restructuring proposal scheme is the first step of the entire restructuring process and is an important momentum in our efforts to transform into a more adaptive, efficient, and profitable business entity," said Irfan.

The restructuring proposal scheme has been submitted through digital data channels that can be accessed in real time by all lessors, creditors, and other related parties referring to the non-disclosure agreement provisions that have been agreed upon by all parties. "This channel will make it easier for parties to review documents and provide feedback because this is part of Garuda's commitment to upholding the principles of transparency and fairness/honesty and creating constructive communication with all creditors," said Irfan.

The proposal, continued Irfan, will also be aligned with the momentum for the submission of the Suspension of Debt Payment Obligation (PKPU) at the Jakarta Commercial Court by one of Garuda's business partners. Garuda has also coordinated with the restructuring team and advisors to continue to conduct intensive coordination with the lessors and creditors to answer and study any feedback submitted to the Company on this proposal scheme and immediately follow up negotiations in order to obtain the best agreement.

"The support of lessors and creditors certainly has an important meaning for us in supporting efforts to transform a business mindset that is more adaptive and resilient in responding to industry challenges in the future," said Irfan.

In line with the ongoing restructuring process, Garuda Indonesia continues to make improvements to its flight services through a review of cost leadership and efficiency aspects while prioritizing aspects of flight safety and comfort for all service users. "Our commitment is also supported by the application of the principles of Good Corporate Governance in all business aspects, including maximizing the revenue line from the cargo business as one of the main pillars of Garuda's operating income," concluded Irfan.