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PT GARUDA Indonesia Tbk (GIAA) on Thursday (6/9) presented a peace proposal as part of the stages of the Debt Payment Suspension (PKPU) process. The peace proposal also included a number of proposals for the settlement of business obligations which are currently being communicated with creditors for further investigation.
A number of proposals for settlement of business obligations contained in the framework of the reconciliation plan are related to the settlement of business obligations through operational cash flows, conversion of debt to equity, modification of new long-term payment terms with a certain tenor period, to offering restructuring instruments both in the form of new debt securities and equity.
The restructuring scheme offered will adjust to the group of creditors that have been classified based on the value of business obligations and the type of business entity of each creditor.
Regarding restructuring instruments, both in the form of new debt securities and equity, Garuda will also offer settlement of business obligations, especially to lessors, finance lessors, Maintenance, Repair and Overhaul (MRO) vendors, aircraft manufacturers and other creditors with invoices above IDR255. million through the issuance of new debt securities with a total value of US$800 million and equity with a total value of US$330 million.
The offer of debt and equity securities with this value will of course continue to be harmonized with the development of negotiations and communication with creditors who are included in the criteria for receiving debt and equity securities.
According to the President Director of Garuda Indonesia, Irfan Setiaputra, the peace proposal presented is a restructuring scheme that will continue to be discussed and finalized with all creditors.
“For this reason, we will continue to establish constructive communication to reach the best agreement with all stakeholders by always paying attention to aspects of compliance with the principles of good corporate governance and continuously being discussed with regulators including BPKP and Jamdatun,” he said in a official press release.
He added that this peace proposal was prepared by Garuda Indonesia to produce the best and optimal solution in the settlement of business obligations by considering the business plan, market conditions, and various inputs from creditors that Garuda Indonesia continues to receive until now. Garuda Indonesia hopes that creditors can give their support to the company in the upcoming vote.
“To creditors who have expressed their support, we express our deepest gratitude because every form of support means a lot to our efforts to restore Garuda to become a more healthy and adaptive business entity and to present a business collaboration base that will be increasingly value-added for all business partners in the future front,” said Irfan.
The List of Fixed Receivables (DPT) which was started to be published by the Management Team can now be reviewed by creditors. Given the importance of DPT for the PKPU process, Garuda Indonesia urges creditors to immediately review and if necessary, provide input to the Management Team on the value listed on the DPT in accordance with the applicable mechanism.
Garuda Indonesia believes that the entire PKPU process, which the company continues to optimize carefully and by always prioritizing the precautionary principle, can produce the best agreement between Garuda Indonesia and all of its business partners.
“We continue to strengthen this hope with solid communication with all creditors, which not only aims to make Garuda a more agile business entity in maximizing business performance, but also to present a more sustainable business ecosystem in the future,” Irfan concluded. [sources/photo special]
