SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Garuda Indonesia has proposed an $800mn bond issuance in a bid to restructure its debts and avoid bankruptcy. It also said that it would raise $330mn by issuing shares to non-shareholding creditors as part of the proposal. Garuda’s lenders and creditors will decide on the proposal on Wednesday, June 15 with at least two-thirds approval by each class of creditors. If the approval does not go through, Garuda will fall into ‘bankruptcy status’. CEO Irfan Setiaputra said, “We are at the point where we are formally presenting the restructuring proposal”. In end-2021 Garuda said it has $9.8bn in debt due to over 800 creditors where some creditors would be required to take a substantial haircut, but state-owned companies and private banks would receive full reimbursement under an adjusted 22-year repayment schedule.

Garuda’s USD 5.95% 2023s were up 0.1 points to 20.5 cents on the dollar.

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