Garuda Indonesia, which is working to improve its finances prior to an initial public offering, has won approval from its noteholders to restructure some of its debs.

It has two sets of floating notes - one totalling $305 million and the other totalling $366 million - and the noteholders have voted in favour of some amendments, says Garuda.

The amendments include "extending the final redemption date to January 2018" and changing the interest rate. The carrier did not say when the original redemption date was.

"Garuda is very pleased to have completed its debt restructuring with its domestic and international noteholders," says Garuda CEO, Emirsyah Sartar.

"In addition to restructuring the notes, we recently completed the restructuring of Garuda's trade debt with [state-owned petrol company] Pertamina and [national airports operator] Angkasa Pura II, as well as the conversion of the mandatory convertible bonds held by Bank Mandiri."

The bank had wanted to be paid in cash but the airline persuaded it to convert its bonds into equity and cash out when Garuda undertakes its IPO later this year.

Source: Air Transport Intelligence news