"The plan for quasi reorganization has been discussed at the company's internal meeting," Elisa Lumbantoruan said here on Monday.
She said the plan for quasi reorganization came after the company had suffered an accumulative loss of around Rp6.8 trillion.
Quasi reorganization is an accounting procedure requiring a company to restructure its equities by scrapping deficit and reevaluating its entire assets and liabilities.
This method is believed to be able to scrap accumulative losses recorded in the company`s financial statement by eliminating deficit balance by way of the difference between assets and liabilities reevaluated.
However, Elisa who is also the company`s director of information technology and strategic planning stopped short of elaborating on steps to be taken.
She said the plan for quasi reorganization had been discussed with the company`s board of commissioners. However, the plan had not been submitted to the State Enterprises Minister as the proxy of shareholders.
"We have not yet submitted it (to the ministry). Under the standing procedure, it must first be discussed at an extraordinary shareholders meeting scheduled for May or June 2011," she said.
Garuda saw its profit plunge 49 percent to Rp515.521 billion in 2010 from around Rp1.018 trillion the year before. The company said the decline in last year`s profit was the result of its major business expansion including the purchase of 24 planes.
The company has set the target of net profit for 2011 at Rp1 trillion with income expected to reach Rp22 trillion.
She expressed hope the plan for quasi reorganization would receive support from all sides, saying the corporate action would have a positive impact on shareholders, particularly dividend payments.
"Without quasi reorganization, the company will likely be able to pay dividends only in 2014. If the plan is to be realized right now, we will be able to pay dividends to shareholders next year," she said.
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Editor: Bambang
Copyright © ANTARA 2011
