Indonesia’s Garuda to bolster capital via 2-stage rights issue
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DISTRESSED carrier Garuda Indonesia plans to hold a rights issue in 2 stages this year to bolster its capital, according to a deputy minister of state-owned enterprises.
After the carrier and its creditors reached an agreement on the US$9.8 billion debt recast, the government will inject 7.5 trillion rupiah (S$714.6 million) through the first rights issue, Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo told a parliamentary hearing Tuesday (Jun 7).
The second rights offering will be conducted early in the fourth quarter to allow strategic investors to buy a stake in the carrier. Wirjoatmodjo said the government plans to keep a 51 per cent stake in the carrier after the rights issues are completed.
Garuda is scheduled to present its final debt restructuring plan on Jun 9 before creditors vote on the proposal the following week. BLOOMBERG
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