Two lessors file applications to cancel Garuda Indonesia restructuring deal – court

Garuda Indonesia Airbus A330 airplane prepares to land at Soekarno-Hatta airport in Jakarta

JAKARTA (Reuters) – Two lessors have filed applications in a Jakarta court in a bid to cancel flag carrier Garuda Indonesia’s restructuring deal, a court website showed.

Garuda reached an agreement with its creditors, which include lessors and Islamic bond investors, last June to restructure more than $9 billion of debt.

The lessors, which filed the applications on Tuesday, are Ireland-based firms Greylag Goose Leasing 1410 and 1446. They have also filed multiple lawsuits against Garuda overseas courts.

In the applications, the lessors also asked the Central Jakarta court to declare that Garuda failed to conduct its restructuring deal and to declare the carrier is in bankruptcy, the filing showed.

“…Garuda is negligent in carrying out its obligations [based on the restructuring agreement],” both lessors said in the filings to court.

In response, Garuda chief executive Irfan Setiaputra said in a statement on Wednesday the carrier has yet to receive an official notification from the court about the applications and that it will coordinate with relevant authorities to study the legal actions.

Last month, Garuda sued the two Ireland-based lessors at the same Jakarta court to counter the lessors’ overseas lawsuits with the first hearing scheduled on May 9.

During the court-supervised restructuring last year, the lessors objected the calculation of Garuda’s unpaid dues to them at 2.3 trillion rupiah, arguing that it had 5.99 trillion rupiah worth of claims against the airline.

Shares of Garuda closed on Wednesday at 98 a piece or 2% down from the opening price.

(Reporting by Stefanno Sulaiman; Editing by Ed Davies)


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