Garuda Indonesia Pays Off Some Creditors' Debts, Here's The Rest

Illustration (Photo: Doc. Antara)

JAKARTA - PT Garuda Indonesia (Persero) Tbk reported that it had completed the repayment of some of the Company's debt securities and sukuk on December 29, 2023.

As for the details, the Reg-S portion of Debt Instruments amounted to 536,452,843.87 US dollars from the total debt of 624,211,705 US dollars with an interest rate of 6.5 percent due in 2031.

Then the sukuk issued by Garuda Indonesia Global Sukuk Limited amounted to 78,019,580.00 US dollars with a periodic distribution of 6.5 percent due in 2031.

Garuda Indonesia partially paid off the principal amount of Reg-S and Sukuk's portion of bonds amounting to 113,800,166.49 US dollars through a tender offer or tender officer scheme with a total implementation value of 49,999,74 or 49.99 million US dollars in stages on December 21, 2023 (for Debt) and December 29, 2023 (for Sukuk).

Quoted from the disclosure of IDX public information, in addition to paying the amount of principal repayment, there are other costs in the form of accrued interest, different payment in kind (PIK), and tax expense incurred paid in transactions of 2,326,776.72.

"After the partial repayment, the remaining total principal amount of debt and Sukuk Perseroan is 500,672,257.38," wrote the Garuda Indonesia report in the IDX's public information disclosure, quoted Thursday, January 4.

Sources of Funds from the Company's Internals

Meanwhile, Garuda Indonesia President Director Irfan Setiaputra has alleged that this partial repayment will be made to debt holders and Sukuk, the majority of whom are Garuda Indonesia creditors in the process of Postponing Debt Payment Obligations (PKPU).

"The exhibition was completed using a source of funds from the company's internal cash," said Irfan in an official statement.

Irfan said, the completion of the corporate action to partially pay off Debt and Sukuk was one of Garuda Indonesia's commitments in maintaining the trust of creditors in line with the various performance improvement measures taken after the PKPU.

Furthermore, Irfan hopes that this initiative can also improve the company's capital structure to become healthier in the future, especially in terms of the company's liquidity and solvency skills so that Garuda Indonesia's operations can be carried out optimally and adaptively.

"The coverage of part of bonds and Sukuk is also part of Garuda Indonesia's proactive steps to ensure that the company's financial performance fundamentals grow solidly, one of which is supported by continuous steps in improving equity performance through active management of assets, liabilities, and equity to optimize the effectiveness of the company's cash flow profile," he said.

"The corporate action is also a representation of the Company's good intentions (goodwill) in a sustainable manner in ensuring that the process of completing obligations to creditors can run more prudently," continued Irfan.