Indonesia’s national flag carrier Garuda’ is seeking a ‘standstill agreement’ debt repayment holiday in order to survive. It is trying to secure a suspension of debt payments to creditors and lessors to avoid a bankruptcy filing.
Kartika Wirjoatmodjo, Indonesia’s deputy minister of state-owned enterprises told a parliamentary hearing Garuda’s finances are ‘under serious strain’ and has a negative cash flow of about $100 million a month.
A ‘fundamental restructuring’ is essential or it will run out of cash in a very short time. It currently has debt of about $4.5 billion.
