Indonesia’s distressed flag carrier, PT Garuda Indonesia wants bondholders to take a substantial haircut of 81 cents on the dollar, Bloomberg reports. Creditors will be submitting their bids for claims today (deadline of 5pm Jakarta time) as part of the airline’s debt restructuring process, through which Garuda plans to trim its liabilities to $3.7bn from $9.8bn. Once the bids are submitted, a court-appointed auditor will issue a verdict on January 19 on whether the claims can go ahead. This date could get pushed as Indonesian law allows a 270-day limit on the restructuring process. Kartika Wirjoatmodjo, a deputy minister at Indonesia’s State-Owned Enterprises Ministry told Bloomberg News this week, “The government is committed to treat all creditors, foreign and domestic, fairly with the ultimate goal of saving Garuda.”

Garuda’s $500mn 5.95% sukuk due 2023, whose maturity was extended by three years, are currently trading at 25 cents on the dollar.

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