[Kabar-indonesia] Garuda Indonesia Eyes Debt Restructure By Yr-End

[Joyo2]

Dow Jones Newswire
November 14, 2006

Garuda Indonesia Eyes Debt Restructure By Yr-End

Indonesia's ailing national airline, Garuda Indonesia, said
Monday it hoped to reach agreement on a $750 million debt
restructuring by the end of the year, the Financial Times
reported on its Web site.

By restructuring its debt, Garuda hopes to break even by the
end of 2007 after years of losses, the FT reported.

The airline owes about $500 million to European export
credit agencies - the U.K.'s ECGD, France's Coface and
Germany's Hermes. Of the rest, $103 million is held by
Indonesia's largest state bank, Mandiri, in mandatory
convertible bonds, the report said.

"Our hope is that in the near future, in a few weeks, we
will have reached a restructuring deal in principle with the
(European) ECAs," Emirsyah Satar, Garuda's president
director, was quoted as saying by the FT.

The airline estimates its sustainable debt level is just
$300 million, the FT said.

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Joyo Indonesia News Service
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