JAKARTA: Indoinesia's national flag carrier Garuda Indonesia will seek to restructure US$500mil of Islamic bonds due to mature next month, the deputy of the state-owned enterprises ministry has announced.
"We plan to ask for restructuring of the maturing global sukuk," Kartika Wirjoatmodjo said via text message on Sunday (May 10).
"We have engaged with an adviser, who has begun to communicate with bondholders," he said.
This week, Garuda said in a statement to the Indonesia stock exchange that it was starting "a process of open and constructive dialogue" with its bondholders via an agent.
The company was assessing all options regarding the sukuk and had appointed PJT Partners as its financial adviser, it said.
Garuda also said the coronavirus pandemic, which has disrupted global travel, had "created an extremely challenging business environment" and the airline had been taking measures to protect its staff, continue to serve customers and manage liquidity.
Wirjoatmodjo said the government had not discussed any capital injection for the airline, which is more than 60%-owned by the state.
Garuda's chief executive, Irfan Setiaputra, confirmed restructuring of the sukuk was being discussed without elaborating.
On Friday, an Indonesian court jailed Emirsyah Satar, a former chief executive of Garuda indonesia, for bribery and money laundering related to procurement of planes and engines from Airbus and Rolls-Royce, his laywer said. Satar's lawyer Luhut Pangaribuan said his client had been given an eight-year sentence and fined US$2 million ($1.4 million) by the country's corruption court.
Indonesia’s Corruption Eradication Commission (KPK) had indicted Satar, CEO of Garuda from 2005 to 2014, over payments from a businessman via a third party for the procurement by Garuda indonesia of Roll-Royce Trent 700 engines and Airbus A320 and A330 planes.
The indictment also related to the procurement of Airbus planes for PT Citilink indonesia, a unit of Garuda. - Reuters
"We plan to ask for restructuring of the maturing global sukuk," Kartika Wirjoatmodjo said via text message on Sunday (May 10).
"We have engaged with an adviser, who has begun to communicate with bondholders," he said.
This week, Garuda said in a statement to the Indonesia stock exchange that it was starting "a process of open and constructive dialogue" with its bondholders via an agent.
The company was assessing all options regarding the sukuk and had appointed PJT Partners as its financial adviser, it said.
Garuda also said the coronavirus pandemic, which has disrupted global travel, had "created an extremely challenging business environment" and the airline had been taking measures to protect its staff, continue to serve customers and manage liquidity.
Wirjoatmodjo said the government had not discussed any capital injection for the airline, which is more than 60%-owned by the state.
Garuda's chief executive, Irfan Setiaputra, confirmed restructuring of the sukuk was being discussed without elaborating.
On Friday, an Indonesian court jailed Emirsyah Satar, a former chief executive of Garuda indonesia, for bribery and money laundering related to procurement of planes and engines from Airbus and Rolls-Royce, his laywer said. Satar's lawyer Luhut Pangaribuan said his client had been given an eight-year sentence and fined US$2 million ($1.4 million) by the country's corruption court.
Indonesia’s Corruption Eradication Commission (KPK) had indicted Satar, CEO of Garuda from 2005 to 2014, over payments from a businessman via a third party for the procurement by Garuda indonesia of Roll-Royce Trent 700 engines and Airbus A320 and A330 planes.
The indictment also related to the procurement of Airbus planes for PT Citilink indonesia, a unit of Garuda. - Reuters
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