After Taking Care Of The PKPU, Garuda To Rights Issue Twice In The Third And Fourth Quarters Of 2022

Illustration of Garuda Indonesia Airplane (Photo: ANTARA)

JAKARTA - PT Garuda Indonesia (Persero) Tbk is committed to paying debts to creditors.

The payment scheme will be made through new debt and share offerings.

As is known, currently the issuer with the stock code GIAA is in the process of debt restructuring or delaying debt payment obligations (PKPU).

President Director of Garuda Indonesia, Irfan Setiaputra, said that debt payments would be adjusted according to the peace proposals that were prepared and were very diverse.

Irfan gave an example, for certain types of creditors such as MSMEs whose debt values are small, they will be paid directly.

"But we are still finalizing it in a few months. Of course it doesn't mean that PKPU will be knocked on and paid tomorrow, no, but our commitment is paid," Irfan told VOI at the Garuda Indonesia office, Jakarta, Tuesday, June 7.

Irfan explained that the debt payment scheme would be carried out in the form of a new debt.

However, said Irfan, it could also be through a share offering. However, this is still being discussed with all parties.

"But the majority is in the form of new debt or shares and we plan to extend our debt with very low interest for more than 20 years. This is what we are discussing with all parties, and everything is positive. Some parties have even confirmed that his support will be present in court and will support us," he explained.

Still said Irfan, in principle, creditors agree but require approval from the commissioners and shareholders.

"And it does take time. But the most important thing is that the majority of negotiations are moving in a positive direction, many have expressed their support for us," he said.

Garuda to Right Issue Twice

Separately, Deputy Minister of SOE II, Kartiko Wirjoatmodjo or Tiko revealed, PT Garuda Indonesia Tbk will conduct two rights issues in 2022.

The corporate action was realized in the third and fourth quarters of this year.

Tiko said the rights issue of the issuer codenamed GIAA was to obtain new investors.

This step was taken after the PKPU process and the achievement of peace and homologation from the company's creditors.

"As we said before, God willing, if later the PKPU process can achieve peace and homologation, we will do two rights issues," said Tiko.

For the first rights issue, he said, shareholders would inject IDR 7.5 trillion from the government's portion for the initial position of restructuring Garuda Indonesia.

"Then we will conduct a second rights issue, maybe around the beginning of the fourth quarter for additional funding from strategic investors. As we know in the last Garuda Panja decision, we will limit that the government's share portion remains at 51 percent of Garuda's total share ownership," he said.

Tiko hopes that this corporate action will run smoothly, especially the capacity of the Indonesia Stock Exchange (IDX) to be able to absorb various rights issues.

"Hopefully the stock exchange's capacity to absorb various rights issues is good enough, I hope," he said.

For your information, Garuda Indonesia's PKPU process has been extended to 20 June 2022.

According to the decision of the Jakarta District Court Judges on Friday, May 20. This extension is the last time for Garuda's PKPU.