Garuda Indonesia files for Chapter 15 U.S. bankruptcy procedure – CEO
2022.09.26 03:39
© Reuters. FILE PHOTO: A worker walks on a crane as a Garuda Indonesia’s aircraft is parked at the Garuda Maintenance Facility (GMF) AeroAsia, at Soekarno-Hatta International airport near Jakarta, Indonesia, January 21, 2022. REUTERS/Willy Kurniawan/File Photo
JAKARTA (Reuters) – Flag carrier Garuda Indonesia has requested that a court in New York recognise the airline’s recent debt restructuring deal in a Jakarta court, under Chapter 15 of the U.S. Bankruptcy Code, its chief executive said on Monday.
Garuda filed the Chapter 15 case late last week at a New York bankruptcy court, CEO Irfan Setiaputra told Reuters.
Chapter 15 provides for cooperation between U.S. and foreign courts, if there is a U.S. financial interest in proceedings.
Garuda and its creditors agreed to halve its debt to about $5 billion in a deal overseen by a bankruptcy court in Jakarta in June.
However, the carrier’s restructuring agreement is currently being challenged in the country’s Supreme Court by an Ireland-based aircraft lessor, Greylag Goose Leasing and no decision has been made so far.
The lessor has previously objected to the calculation of their claims at around 2.3 trillion rupiah ($152.07 million) in the restructuring agreement.
In a parliamentary hearing on Monday, finance ministry senior official Rionald Silaban said one of Garuda’s lessors Boeing (NYSE:) had yet to participate in the restructuring plan, but said the U.S. planemaker “will eventually participate”.
Claims from Boeing to Garuda are estimated at $822 million.
Boeing did not immediately respond to request for comment.
($1 = 15,125.0000 rupiah)
