As a part of the restructuring process, GIIA has also fulfilled the Peace Treaty realization, effective January 1st, 2023.
Heaptalk, Jakarta — PT Garuda Indonesia Tbk (GIIA) has officially effectuated its business performance’s restructuring process, which has intensified since 2021. This Indonesia Airlines Company, with an issuer code of GIIA, also disclosed the shareholding composition.
The restructuring completion move was marked by the issuance of new Debentures and Sukuk (State Sharia Securities) on December 28th – 29th, 2022. This essential document issuance is the final strategic effort of this State-Owned Airlines Company to achieve an effective date following the Peace Treaty that has been homologated by the Commercial Court and Central Jakarta District Court on June 27th, 2022.
In response to this restructuring process, the President Director of Garuda Indonesia, Irfan Setiaputra, conveyed the company has also realized its plan in the fulfillment of readiness of the Peace Treaty realization as a part of the crucial phase to settle this process, which has been effective on January 1st, 2023.
Moreover, to complete this restructuring process, the company has also performed several fundamental steps, including the issuance of new shares by providing the rights issue activity to around 39.78 billion stocks, or approximately worth Rp7.79 trillion (US$500 million), including the State Equity Participation (PNM) as well as the participation of other shareholders.
Afterward, this phase continued with a Private Placement activity, whereby Garuda Indonesia distributed the stocks to realize the company’s debt conversion of 25.80 trillion stocks, or equal to US$323 million (Rp5.05 trillion), including the Mandatory Convertible Bonds realization.
With a new stock disbursement series, Irfan revealed Garuda currently has a shareholding composition consisting of Government shareholding of 64.54%, Trans Airways of 7.99%, public shares of 4.83%, and creditor shares of 22.63%.
Completing the issuance of the new shares, Garuda Indonesia has also released New Sukuk as the further step of Garuda’s Restructuring process toward the Global Sukuk of US$500 million that has been restructured into the New Sukuk, with a principal value worth US$78.01 million and maturity tenor of nine years of the issuance.
Also, the periodic distribution amount is 6.5% in cash or during the first two years at the Trustee’s option, and around 7.25% is required to be paid in the Payable in-Kind (PIK) scheme.
On the other hand, Garuda Indonesia has also publicized new debentures as the restructuring scheme for the creditor who clarified as the lenders, the finance lease creditors, aircraft manufacturers, foreign debt creditors, and the Maintenance, Repair, and Operation (MRO) vendors. These parties are entitled to receive this new debenture with the initial principal amount worth US$624,21 million.
“We appreciate the overall stakeholders who continue to support Garuda’s endeavors to finalize this restructuring phase, particularly the entire creditors, with a high confidence toward the outlook for Garuda’s business performance going forward.”
