Take A Peek At Garuda Indonesia's Corporate Action Towards The End Of 2023 To Move Adaptively

Garuda Indonesia (Photo: dock. Antara)

PT Garuda Indonesia (Persero) Tbk (GIAA) revealed plans for corporate action to partially pay off debt securities and sukuk through an offer tender scheme to debt securities holders and sukuk who are Garuda Indonesia creditors 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.

Furthermore, Irfan said that the allocation of funds came from the company's internal cash, in line with the Company's cash management (cash management) policy, one of which was prioritized to settle the Company's obligations to creditors.

"This plan to pay off some debt and sukuk securities is 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 operations performance," he said.

This corporate action is also a sustainable representation of goodwill 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.

Furthermore, Irfan said that more technical matters related to the partial repayment 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 improvements to operating performance, by paying close attention to macroeconomic outlooks in order to maintain the momentum of restoring Company performance," said Irfan.

In the plan to partially repay the Debt and Sukuk securities, Garuda Indonesia has allocated a maximum of 50 million US dollars or around Rp774 billion (assuming an exchange rate of Rp15,481 per dollar) for the principal value (principal).

Irfan said the amount did not include payment of paid interest or payment of the amount of paid periodic distribution whose value would be determined later.