State-Owned Enterprises Ministry confirms delay in Garuda IPO
Indonesia’s State-Owned Enterprises Ministry confirmed Garuda Indonesia plans to delay its IPO, instead focussing on settling its debt restructuring plan with the European Credit Agency (ECA) before launching the offer (The Jakarta Post, 11-May-2010). The IPO was to be launched in Jun-2010. Garuda had planned to renegotiate the restructuring plan with ECA last month but was forced to cancel the negotiations as staff could not travel to Europe due to the closure of European airspace. Garuda reportedly owes ECA approximately USD320 million. The carrier remains optimistic the IPO will be launched by year end.