New Garuda rescue plan seeks US$6bil debt cut

The proposal, unveiled by deputy SOEs minister Kartika Wirjoatmodjo(pic), entails pressing creditors – including aircraft lessors, banks and business partners – to accept either a haircut or a debt-for-equity swap.

JAKARTA: The State-Owned Enterprises (SOEs) Ministry has announced a new plan to save Garuda Indonesia, as the debt-laden national air carrier teeters on the edge of bankruptcy.

The proposal, unveiled by deputy SOEs minister Kartika Wirjoatmodjo, entails pressing creditors – including aircraft lessors, banks and business partners – to accept either a haircut or a debt-for-equity swap.