Garuda Indonesia has received the green light from its creditors to move forward with its restructuring plan, according to a Reuters report.
The report quotes officials as saying that out of 95% of creditors who participated in the voting, the vast majority of creditors approved the plan to restructure the airline’s $9 billion debt. The agreement is set to be ratified by the Indonesian court.
AeroTime has asked Garuda Indonesia for a comment.
Garuda Indonesia filed for debt restructuring in December 2021.
The airline had been suffering from financial trouble prior to the COVID-19 pandemic but these were accelerated as the global health crisis wreaked havoc on the aviation industry.
During the first three months of 2021, Garuda Indonesia reported a net loss of $1.7 billion, a notable increase compared to a net loss of $1.1 billion in 2020.
The negative financial outcome was attributed to the ongoing pandemic followed by stringent travel restrictions, which “has caused a significant reduction in air travel and has a major adverse impact on the Group’s operations and liquidity”.
The airline has not yet released its 2021 full year and Q1 2022 financial reports.