JAKARTA - The inaugural trial of the application for postponement of debt payment obligations or PKPU against the state-owned airline, PT Garuda Indonesia (Persero) Tbk will take place next week, Tuesday, July 27.
The management of Garuda Indonesia in its official explanation stated that the company has received a court summons via courier services in the case of a request for postponement of debt payment obligations (PKPU) Number: 289/Pdt.Sus/PKPU/2021/PN.Niaga.Jkt.Pst (Letter Relaas Session ).
Based on the court summons, it is known that there was a PKPU application from PT My Indo Airlines (MYIA) as a PKPU applicant to the company as a PKPU respondent.
"The first trial has been scheduled for Tuesday, July 27, 2021 at the Commercial Court at the Central Jakarta District Court," the company said in a statement quoted on Monday, July 19.
In addition, Garuda Indonesia will also submit a report on information or material facts related to PKPU according to the time limit determined by the Regulation of the Financial Services Authority No. 31/POJK.04/2015 concerning Disclosure of Information or Material Facts by Issuers or Public Companies.
The issuer codenamed GIAA is also currently developing a strategy to resolve its debt problems. As is known, Garuda recorded a loss of 2.5 billion US dollars throughout 2020.
Meanwhile, its short-term liabilities exceeded its current assets by US$3.8 billion and experienced an equity deficiency of US$1.9 billion.
"The COVID-19 pandemic, followed by travel restrictions, has caused a significant reduction in air travel, and has had an adverse impact on the Group's operations and liquidity," explained Garuda Indonesia management.
Meanwhile, the following things will be done by Garuda Indonesia to overcome liquidity pressures and improve the group's financial position:
- Negotiating with creditors so that the Group can get a relaxation of debt payments.
- Negotiating with lessors to get a better scheme for Group operations, including but not limited to reducing monthly rental payments and maintenance reserve funds, and changing to power by the hour arrangements.
- Conduct positive rationalization of the number of employees in accordance with the Company's long-term plan.
- Submit an application to the authorized agency in the Government for the disbursement of the remaining funds of the Mandatory Convertible Bond facility.
- Requesting to the competent authorities in the Government for the Group to get relaxation in the payment of its tax obligations.
- Requesting financial support and approval from the competent authorities in the Government so that the Group can carry out financial and operational restructuring of the Group.
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