Last Promise, Garuda Proposes 30-Day PKPU Extension

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Last Promise, Garuda Proposes 30-Day PKPU Extension

Jakarta, CNBC Indonesia – PT Garuda Indonesia (Persero) Tbk on Tuesday (10/5/2022) is known to have submitted an application for an extension of the Debt Payment Obligation (PKPU) extension for 30 days to the Commercial Court at the Central Jakarta District Court.

Previously, the PKPU had also been extended until May 20, 2022. The Jakarta District Court Panel of Judges had decided to extend the Permanent PKPU process for 60 days until May 20, 2022, and Garuda Indonesia welcomed the decision. 

This is the second extension after previously, the company had been given an extension of time until March 21, 2022 to complete its reconciliation proposal aimed at its creditors.

This time, the application for an extension of time takes into account the ongoing claim verification, the mechanism for the reconciliation plan which is still being discussed further with the company’s creditors, as well as accommodating requests from several creditors.

Garuda Indonesia President Director Irfan Setiaputra explained that the extension of the PKPU would provide a more optimal opportunity for Garuda and all creditors, including lessors, to reach a mutual agreement.

Regarding the deadline, Garuda hopes that this application can be put to good use before finalizing the peace plan and completing the PKPU process.

The PKPU extension process will be the last extension application which is expected to be maximized by all parties.

“As PKPU aims to get a win-win solution for all parties involved, we believe that this process needs to be carried out carefully and with the principle of prudence,” said Irfan in an official statement quoted on Wednesday (11/5/2022) .

“We are grateful for the support and understanding from creditors throughout the PKPU process, which has gone smoothly so far. This is an important sign that the communication process that has been going on so far has shown increasingly solid optimism for Garuda’s business outlook going forward.”

During the PKPU process, Garuda is committed to ensuring that passenger and cargo flight operations continue to run normally. Furthermore, Garuda’s operational performance at the end of the first quarter of 2022 began to show promising improvements.

This is also supported by the relaxation of travel mobility policies that encourage public interest in traveling by air transportation to increase.

“In addition, the operation of Umrah flight services from a number of major cities in Indonesia and the implementation of Hajj flights will also be a positive signal in our efforts to accelerate performance recovery, which we will continue to optimize,” concluded Irfan. 

Source: May 11, 2022