Reports in the media state that an Indonesian court has rejected an application by cargo company PT My Indo Airlines' (MYIA) to restructure the debt of PT Garuda Indonesia since it claimed the airline failed to meet legal requirements.
Garuda Indonesia has reacted to the news in a statement to the Indonesian stock exchange, (translated) “Until now, there has been no official information received by the Company regarding the follow-up options for the recovery of the Company's performance which is currently developing in the mass media. We can confirm that up to now, the Company continues to take strategic steps to accelerate performance recovery with the main focus on improving the Company's fundamental performance, namely strengthening the financial performance base and focusing on the long-term business model, through a comprehensive restructuring program that we are currently completing. We have also intensified these efforts through various measures to support performance improvement, especially from the aspect of flight operations.”
The airline expresses its optimism for the recovery of the air travel industry as the pandemic becomes more in control and Indonesia’s tourism sector reopens. Garuda also stated that it is continuing to negotiate and communicate with its creditors in order to “achieve the best settlement and optimal restructuring in order to improve the fundamental performance of the Company in the future”.