Garuda’s USD 5.95% 2023 Sukuk crashed over 30 cents to trade at 41.4 cents on the dollar on Thursday. The Indonesian airline has been troubled by liquidity concerns and disclosed early termination of plane leases and unpaid salaries. Last week, Garuda sought suspension of debt payments to avoid bankruptcy. Indonesia’s deputy minister of state-owned enterprises (SOEs), Kartika Wirjoatmodjo said that Garuda needs a restructuring to lower its debt from $4.5bn to ~$1-1.5bn after being severely impacted by the pandemic. He added that the company would run out of cash soon without a moratorium while a failure to conclude restructuring could lead to a bankruptcy.