President Director of Garuda Indonesia Irfan Setiaputra remarked that ratification of the peace proposal was a new milestone for Garuda in conducting its restructuring mission to become an increasingly sustainable and competitive business entity.
"We continue to optimize this momentum to spur positive business performance growth, especially through focus on speeding up the operational performance, in harmony with the company's cost structure that is becoming more solid to face future performance challenges," Setiaputra remarked.
The president director explained that the ratification was in accordance with the support of majority of the creditors based on the voting agenda that took place on Friday (June 17).
Several business obligation settlements' agreement pertain to operational cash flow, debt value conversion into equity, modification of new long-term payment provisions with a certain tenor period, and the offering of restructuring instruments in the form of new debt and equity securities.
Moreover, the restructuring scheme will adjust to the group of creditors, who have been classified on the basis of value of business obligations and the type of each creditor's business entity.
"With the achievement of homologation in this PKPU (Postponing Debt Payment Obligations) process, we continue to intensify steps through several corporate strategic agendas to accelerate business performance recovery," Setiaputra explained.
Furthermore, the work plan also includes adding a fleet by focusing on the profitability of business performance, he revealed.
According to Setiaputra, the plan is also aimed at optimizing flight routes with positive performance, maximizing cargo market share and ancillary revenue, as well as intensifying discussions with the government regarding the support of State Equity Participation (PMN) worth Rp7.5 trillion that will be part of the company's rights issue scheme in an effort to restore flight operations.
Garuda Indonesia believes in the support of its stakeholders, including loyal customers to employees, who have helped the company reach this point, to provide the best flight services as the country’s proud national flag carrier.
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Translator: Sugiharto P, Kenzu T
Editor: Rahmad Nasution
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