Flag carrier Garuda Indonesia has won creditor support for its long-awaited restructuring plan
The much delayed restructuring was approved by 95% of creditors, which are owed about $9.6 billion.
The plan aims to trim billions of dollars in debt.
The approval means it avoids full bankruptcy proceedings.
“The overwhelming support represents high trust in Garuda. We are committed to fulfil this obligation,” Garuda CEO Irfan Setiaputra said.
The plan will see about $1.1 billion in new funds via a new bonds issue and equity to non-shareholder creditors.
Trading in Garuda shares has been suspended for a year.
Garuda had been in financial trouble even before the global pandemic
