President Director Of Garuda Optimistic Majority Of Creditors Agree To Peace Proposal

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - President Director of PT Garuda Indonesia (Persero) Tbk Irfan Setiaputra is optimistic that the majority of creditors will agree to the peace proposal submitted by the company.

Irfan said, so far creditors are committed to supporting the postponement of debt payment obligations (PKPU) by more than 50 percent.

"Our level of confidence today is above 50 percent. I hope this level of confidence will increase along with working hours," Irfan said as quoted by Antara, Friday, June 17.

As part of the PKPU process, Garuda will face the stages of voting or voting for peace proposals in the process of Postponing Debt Payment Obligations (PKPU) which is planned to take place today.

Garuda Indonesia must face a vote on the peace proposal that has been submitted to creditors since the end of December 2021.

After voting, the court will take the PKPU decision on June 20, 2022.

In the voting process, continued Irfan, Garuda has a target of getting 50 plus 1 percent of the total number of creditors (headcount).

In addition, it is necessary to pursue the 67 percent of claims from non-preferred creditors who have voting rights.

The vote will determine the peace agreement (homologation) between Garuda and its creditors.

Therefore, his party will use the remaining time before the voting process to be able to maximize discussions with creditors in order to reach a peace agreement.

"We certainly met with many parties directly and indirectly, to both see that this is a positive effort," he concluded.

Meanwhile, aviation observer Alvin Lie said that the court by giving the opportunity to extend this negotiation is an indication that there is a strong desire from Garuda Indonesia management as well as creditors and aircraft lessors to reach an agreement.

"With all of that, I am quite optimistic that the majority of creditors and lessors will agree to the business plan and pattern of payment of debt arrears proposed by Garuda Indonesia in settling its obligations," said Alvin.

Alvin saw that the management of Garuda Indonesia had built open communication with creditors and lessors.

From the available data, he knows that Garuda Indonesia also offers a business plan that is quite realistic, logical and accommodates the aspirations of creditors and lessors.

According to him, the management transformation plan and business processes presented by Garuda Indonesia after the PKPU are expected to make Garuda Indonesia more resilient, efficient and competitive in the future.