Distressed airlines PT Garuda Indonesia missed the payment on its $500mn 2023s Sukuk even after a 14-day grace period, which lapsed yesterday. The bonds of the state-owned carrier were originally due on June 3, 2021. The airlines in a filing with the Singapore stock exchange said that it ““will continue to defer the periodic distribution amount due June 3”. The airline has been troubled by liquidity concerns post which it has resorted to early termination of plane leases and restructuring its workforce. The government is considering a debt standstill for the carrier to allow a restructure, according to Bloomberg. The troubled flag carrier is in the process of appraising units to be divested as a part of its restructure according to President Director Irfan Setiaputra. Kartika Wirjoatmodjo, deputy minister of state-owned enterprises (SOEs), had said that Garuda needs a restructuring to lower its debt from $4.5bn to ~$1-1.5bn.
Garuda’s USD 5.95% 2023 Sukuk had crashed over 30 cents in the last fortnight.  Garuda’s 5.95% 2023s were down 6.8 to trade at distressed levels of 34.03 cents on the dollar, a drop of ~17%.
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