PT Garuda Indonesia has announced that although it continues to “work diligently” to support its ongoing airline operations and to manage its finances with all “due prudence, it must continue to defer payments due under its $500 million sukuk (due 2023).
“Garuda greatly appreciates the continued support of its Sukuk holders during this challenging time,” said President and CEO of Garuda Indonesia, Irfan Setiaputra. “We are also honoured to announce that Garuda has added financial advisor Guggenheim Securities to its roster of advisors to assist us in addressing the ongoing challenges presented by the COVID-19 pandemic. We believe the team of advisors we have assembled is best positioned to support us as we strive to emerge from the pandemic as a strong, well-capitalized airline.”
Garuda Indonesia has engaged Guggenheim Securities as its financial advisor, which, in partnership with the company’s existing advisors, PT Mandiri Sekuritas, Cleary Gottlieb Steen & Hamilton and Assegaf Hamzah & Partners, will assist the company to “evaluate all strategic alternatives”.
Last week, Garuda Indonesia confirmed that it had accelerated the early return of two 737-800NGs to one lessor after the parties reached a mutual agreement. The airline added that discussions with other lessors continued as the company works to optimise its fleet.