Troubled carrier Garuda Indonesia filed for Chapter 15 bankruptcy at a New York bankruptcy court. CEO Irfan Setiaputra said, “Garuda has requested that a court in New York recognise the airline’s recent debt restructuring deal in a Jakarta court, under Chapter 15 of the U.S. Bankruptcy Code.” Chapter 15 ensures for cooperation between US and foreign courts if US financial interest is involved in the proceedings. In June 2022, under a court supervised restructuring, the company agreed to halve its debt to $5.1bn from $10.1bn. Post that, the restructuring was challenged in Indonesia’s Supreme Court by an Ireland-based aircraft lessor, Greylag Goose Leasing with an objection related to the calculation of their claims at around $152.1mn. No outcome of the decision has come yet. Apart from the lessor, Boeing which has claims of around $822mn, has also not yet participated in the restructuring plan.
Garuda’s dollar bonds were trading lower with its 5.95% 2023s down over 0.69 points to 17.12 cents to a dollar.
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