Garuda completes debt restructuring

This story is sourced from Pro
See more Pro news »

Garuda Indonesia has completed its final round debt restructuring, signing a deal for outstanding debt of $277 million.

The deal was signed between Garuda and Lloyds TSB bank, which represented the lenders, says Garuda. The last group of lenders was comprised of the European Export Credit Agency and "commercial lenders."

As of 10 November, Garuda had total debt of $464 million, down from $868 million in 2005. Debt payments, debt buy backs, and equity conversions have helped the carrier cut its debt load over the last five years.

"The last part of $464 million, was signed today in an amount of $277 million and restructured until 2016," says Garuda. The money was originally used to fund the purchase of six Airbus A330-300 aircraft in 1996.

Garuda CEO Emirsyah Satar says the deal is an important milestone for Garuda, as it will allow the carrier's growth to accelerate, particularly in light of Garuda's long-planed initial public offering.