Garuda Indonesia to consider restructuring debt

Garuda Indonesia to consider restructuring debt

Illustration - Workers unload cargo from a Garuda Indonesia aircraft. (ANTARA PHOTO/Ampelsa/aww/KT)

Currently, Garuda Indonesia is working to resolve lawsuits with a number of lessors through negotiations on aircraft lease contracts.
Jakarta (ANTARA) -   After losing a lawsuit filed by an aircraft leasing company in the London Court of International Arbitration (LCIA), state-owned airline PT Garuda Indonesia has said it will consider restructuring its debt.

 

Garuda Indonesia president director Irfan Setiaputra said the airline has continued to establish intensive communication with Goshawk to secure the best deal in an effort to complete the company's business obligations outside the ongoing legal process.

 

"One of the efforts is to consider the possibility of restructuring schemes and other supporting alternative strategies," Setiaputra revealed in a statement released here on Friday.


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He expressed the hope that restructuring would yield the best deal for all parties, especially by paying attention to aspects of business continuity amid the pressures on the aviation industry amid the pandemic.

 

According to Setiaputra, the airline will ensure that all aspects of flight operations continue to run normally despite it facing a number of lawsuits from lessors.

 

"We will fully respect and respond wisely to the matters that LCIA has determined in its authority as a resolution agency for international arbitration disputes," he said.

 

The arbitration decision followed a lawsuit filed by aircraft lessor Helice Leasing S.A.S and Atterisage S.A.S (Goshawk) over the company's aircraft lease payment obligations. The lawsuit was filed with the LCIA in early 2021.

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The LCIA issued an arbitration award under which Garuda is required to pay rent on aircraft leases, obligations under the aircraft rental agreement, late interest payments, and the plaintiffs' case fees.

 

Currently, Garuda Indonesia is working to resolve lawsuits with a number of lessors through negotiations on aircraft lease contracts, Setiaputra said.

 

The state-owned airline has aircraft rental agreements with 31 lessors, he added.

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