Garuda was once faced with similar difficulties, but now it has shown a good performance.Jakarta (ANTARA News) - State Enterprises Minister Dahlan Iskan has said a team will be formed to restructure the debts of state-owned Merpati Nusantara airlines.
Merpati has a total debt of Rp6 trillion to the government, aircraft lessor and a number of other state companies including oil and gas company PT Pertamina, airport operators PT Angkasa Pura I and PT Angkasa Pura II and asset management company PT Perusahaan Pengelola Aset (PPA).
The restructuring team is formed in a bid to save the debt ridden airline, Dahlan said after a meeting with leaders of state companies here on Tuesday.
He said the team will be headed by Wahyu Hidayat, former president of the airline.
The team will seek to roll over repayment of its debts or covert the debts into equity under debt to equity swap, he said.
The team will meet the legislators of Commission VI of the House of Representatives to seek approval.
Dahlan said he was inspired by leapfrogging growth recorded by nation`s flag carrier Garuda Indonesia after its success in restructuring its debt.
"Garuda was once faced with similar difficulties, but now it has shown a good performance," he said.
If the restructuring proposal was approved by the House of Representatives the entire board of directors would be replaced, he said.
Meanwhile, Merpati President Rudi Setyopurnomo said the airline, which serves mainly domestic and feeder routes will follow the steps taken by Garuda in debt restructuring.
Garuda expanded rapidly and has even become a public company after restructuring debts totaling more than Rp10 trillion to an Export Credit Agency (ECA), Rudi said.
(Uu.H-ASG/F001)
Editor: Priyambodo RH
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