Court delays Garuda Indonesia's debt deal ratification for a week

JAKARTA'S commercial court has delayed for a week the ratification of Garuda Indonesia's deal to restructure the airline's more than US$9 billion debt due to objections from 2 creditors, an administrator said on Monday (Jun 20).

The deal, which Garuda secured after most of its creditors voted to approve its restructuring proposal last week, was supposed to be ratified in a meeting on Monday.

"The 2 creditors objected to the method and the calculation of the claims," a court-appointed administrator for the case, Martin Patrick Nagel, told Reuters.

Two Ireland-based aircraft lessors, Greylag Goose Leasing 1410 and 1446, had objected to the court-verified amount of their claims against Garuda, Nagel said.

The administrators had accepted a combined total of around 2.3 trillion rupiah (S$215.2 million) in claims from the 2 lessors, according to a debt list document dated on June 14.

Nagel said they wanted the court to recognise 5.99 trillion rupiah (US$403.91 million) worth of claims.

The panel of judges said it needs time to study the creditors' request, he added.

Garuda and a lawyer for the lessors did not immediately respond to request for comment. REUTERS