Indonesian Airline Garuda ‘Responds Positively’ to Temporary PKPU Decision By Indonesian Court

Our Asia Core Credit team has been reporting on the Indonesian flag carrier airline Garuda’s restructuring since early January 2021, and as recently as Dec. 9, the team exclusively reported that AJCapital had resigned from its role as financial advisor to an ad hoc group (AHG) of holders of Garuda Indonesia’s $500 million 5.95% sukuk, and is now expected to take on that role for the carrier in an upcoming in-court supervised restructuring (PKPU). Garuda’s request to AJCapital is said to have come about as the carrier needs an experienced financial advisor to handle its onshore in-court restructuring, or PKPU processes, we reported. On the same day, Reorg reported that the Indonesian court accepted Mitra Buana’s petition to place Garuda into a temporary 45-day PKPU. As we reported in September, the PKPU is expected to run alongside a UK scheme of arrangement related to its lessors.