Garuda Indonesia Files for Chapter 15 Bankruptcy in the United States – CEO

A worker walks on a crane as a Garuda Indonesia plane is parked at the Garuda Maintenance Facility (GMF) AeroAsia at Soekarno-Hatta International Airport near Jakarta, Indonesia January 21, 2022. REUTERS/Willy Kurniawan/File Photo

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JAKARTA, Sept 26 (Reuters) – Flag carrier Garuda Indonesia (GIAA.JK) has requested that a New York court recognize the airline’s recent debt restructuring deal in a Jakarta court, under the Chapter 15 of the US Bankruptcy Code, said its chief executive. In Monday.

Garuda filed the Chapter 15 case late last week in New York bankruptcy court, CEO Irfan Setiaputra told Reuters.

Chapter 15 provides for cooperation between US and foreign courts, if there is a US financial interest in the proceeding.

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Garuda and his creditors agreed to halve his debt to around $5 billion in a deal overseen by a bankruptcy court in Jakarta in June. Read more

However, the carrier’s restructuring deal is currently being challenged in the country’s Supreme Court by Ireland-based aircraft lessor Greylag Goose Leasing and no decision has been made to date.

The lessor previously objected to calculating its claims at around 2.3 trillion rupees ($152.07 million) in the restructuring agreement.

In a parliamentary hearing on Monday, senior finance ministry official Rionald Silaban said one of Garuda’s backers, Boeing (BA.N), had not yet participated in the restructuring plan, but did said the US aircraft manufacturer “will eventually participate”.

Boeing’s claims against Garuda are estimated at $822 million. Read more

Boeing did not immediately respond to request for comment.

($1 = 15,125.0000 rupees)

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Reporting by Stefanno Sulaiman; Writing by Gayatri Suroyo Editing by Kanupriya Kapoor, Martin Petty

Our standards: The Thomson Reuters Trust Principles.

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