Garuda Indonesia may delay IPO due to debt restructuring - report
Indonesian State-Owned Enterprises Minister, Mustafa Abubakar, stated Garuda Indonesia’s plans to launch an IPO in 3Q2010 may be delayed as the carrier is still restructuring its debt with the European Credit Agency (ECA) (The Jakarta Globe, 12-Apr-2010). Mr Abubakar stated the debt is likely to be rescheduled, as it will be difficult to settle all at once. Garuda denied the comment, stating its debt restructuring would not effect the timing of the IPO and expansion plans. President Director, Emirsyah Satar, stated the carrier is in the process of finalising its USD241.2 million debt with ECA, with the agency agreeing to restructure the debt until the end of 2016. The carrier plans to raise approximately USD300 million through the sale of 40% of its equity.