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Garuda Indonesia; noteholders approve restructuring

Direct News Source

11-Jan-2010 Garuda Indonesia (persero) wishes to announce that the adjourned meeting of holders ("Noteholders") of the US$305,279,760 Floating Rate Notes due 2007 and IDR 366,286,240,000 Floating Rates Notes due 2007 (the "Notes") was held on January 11, 2010 at 10 a.m. in Singapore, at which Noteholders approved an extraordinary resolution for the restructuring of the Notes. Approximately 99.2% of Noteholders attending the meeting voted in favor of Garuda's restructuring plan.

It is expected that an amended and restated trust deed will be executed by the Issuer and Trustee on or about January 21, 2010. The amendments to the trust deed constituting the Notes include an extension of the final redemption date of the Notes to January 2018 and the modification of interest rates on the USD Notes to six-month LIBOR plus 1.75% p.a. The result of the auction for the discounted purchase of Notes by Garuda undertaken in conjunction with the restructuring of the Notes will be announced on January 13, 2010.

Emirsyah Satar, Chief Executive Officer of Garuda, said that "Garuda is very pleased to have completed its debt restructuring with its international and domestic Noteholders. In addition to restructuring the Notes, we have recently completed the restructuring of Garuda's trade debt with Pertamina and Angkasa Pura I and Angkasa Pura II as well as the conversion of the mandatory convertible bonds held by Bank Mandiri. These restructurings will provide long term stability for Garuda's operations and strengthen our balancing sheet."

Mr. Satar went on to say that "Garuda will continue to work to complete the restructuring of its other debts as soon as possible."

The company was advised on the restructuring of the Notes by N M Rothschild & Sons (Singapore) Limited, as restructuring advisor, K&L Gates LLP in Singapore, as international legal counsel and Wiriadinata & Saleh in Jakarta, as Indonesian Legal counsel.