[Kabar-indonesia] Garuda's US$794m Debt Restructuring Delayed

[Joyo at aol.com]

also: (in case you missed): Wife of Indonesian activist 
fatally poisoned on Garuda jet sues the airline

Garuda Indonesia's Debt Restructuring Delayed

TEMPO Interactive, Jakarta, Oct. 9: The restructuring of PT Garuda 
Indonesia's 
debt amounting to US$794 million, or Rp7.3 trillion, to several domestic and 
foreign creditors has been delayed.

At first, Garuda presented debt restructuring schemes in September, but 
because the government had not decided which scheme should be used, debt 
restructuring will almost certainly to be delayed until the beginning of November.

"The delay is also because of the fasting month and the Eid holidays, the 
government is concentrating more on these," Alex Maneklaran, Finance Director of 
Garuda Indonesia, told Tempo last weekend.

Garuda itself has proposed several schemes to settle its debts to creditors. 

The debt restructuring is an important part of the effort to improve the 
company.

Nevertheless, Alex was not willing to explain about the schemes. 

What is certain is that the schemes will support Garuda's performance in 
order to meet its profit targets of Rp65 billion in 2007 and Rp444 billion in 
2008. 

Garuda has also asked the government to complete the Government Regulation on 
state co-financing so that fund supply to Garuda of Rp500 billion can be 
disbursed.

"At the least, the schemes support Garuda to reach a point of equilibrium in 
2007," said Alex. 

At the beginning of September, Garuda submitted two schemes to the Garuda 
Indonesia debt restructuring team set up by the government and led by Sahala 
Lumban Gaol, Deputy Coordinating Minister for the Economy from the Macro Economy 
and Finance Division. 

This team will present the schemes to the State Enterprises Ministry in 
October.

The debt restructuring proposal, Gaol said, was addressed to all creditors 
because all of them want the same treatment. 

"All creditors have only welcomed the options. They haven't known our 
requests," he said. 

Currently Garuda's highest debt is to European Credit Agency amounting to 
US$497 million. 

The remaining debts to creditors: floating rate notes holders US$130.6 
million; Export Development of Canada US$12.1 million, BNI US$11 million, Bank 
Mandiri syndicate US$2.5 million and in the form of mandatory convertible bond 
US$136.8 million. -- Anton Aprianto

------------------------------------------

Wife of Indonesian activist fatally poisoned 
on Garuda jet sues the airline

JAKARTA, October 9 (AP) - The wife of an Indonesian rights activist
poisoned to death while on board a Garuda jet launched a civil case
against the national carrier Monday in which she demanded almost
US$1.5 million (euro1.18 million) in damages.

The court case comes less than a week after the only person convicted
in the killing -- an off-duty Garuda pilot -- was acquitted by
Indonesia's Supreme Court after judges ruled there was not enough
evidence.

Munir Thalib, a human rights lawyer who often received death threats
linked to his work exposing abuses at the hands of security forces,
died of arsenic poisoning on a flight in September 2004 from Jakarta
to Amsterdam.

His wife, Suciwati Thalib, said Garuda was negligent for not
protecting her husband and should pay rupiah 9.74 billion (US$1.4
million; euro1.1 million) in damages.

"Garuda has to be accountable for the safety of every passenger,
including my husband," Suciwati said after the Central Jakarta
District Court began hearing the case Monday. "I hope we will win."

Garuda's spokesman Pudjobroto and lawyers could not be reached for
immediate comment.

The acquittal of the off-duty pilot angered many in Indonesia, where
the case was seen as a test for a legal system still considered by
many to be beholden to the military and political elite.

An independent investigation launched after the killing concluded
Munir was killed because of his human rights work. The probe also
alleged the plot had links to the intelligence agency, but the claims
were not followed up by police.

------------------------------------------
Joyo Indonesia News Service
------------------------------------------