Mandala Airlines misses deadline to extend route authorisations
Mandala Airlines has missed a 30-day deadline to extend route authorisations, reorganize its finances, secure new aircraft and recommence operations (Bali Discovery Tours/The Jakarta Post, 19-Feb-2011). The deadline to request the extension expired on 17-Mar-2011. The curator of the debt restructuring of the carrier, Duma Hutapea, decided at a creditors’ meeting on 18-Feb-2011, to postpone a voting process, allowing the creditors more time to analyse the reconciliation plan submitted by Mandala. The carrier suspended serviced on 13-Jan-2011, before management stressed that they were relying on its creditors to agree to its restructuring plan, arguing that they would eventually see it as the best solution for all parties. The carriers liabilities were revealed to total USD271 million as more claims were verified in court. The airline had earlier reported that it knew about USD90 million in debt and filed for, and received, a 45-day debt suspension in commercial court on 17-Jan-2011. Its creditors have the option to approve or decline the restructuring plan, or agree to extend the debt suspension to 270 days.
Mandala Airlines: “We are committed to uphold the law and existing regulations during the restructuring process and we welcome the decision taken by the curator. We are also open for creditors who need further clarification related to the Reconciliation Plan. The plan will see Mandala’s debts converted into shares of the restructured company. Creditors will have the chance to recover their funds once the airline resumes operation and has a better financial condition.” President director, Diono Nurjadin. Source: The Jakarta Post, 19-Feb-2011.