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Bloomberg
PT Garuda Indonesia filed for Chapter 15 bankruptcy protection in the Southern District of New York court, as the debt-laden carrier tries to secure its future profitability.
The document is dated September 23. The submission comes as the airline, having completed a court-supervised debt restructuring in Indonesia to halve cut its debt load, tries to capitalise on the rebound in international travel.
Non-US companies commonly file for Chapter 15 bankruptcy to ensure they won’t be sued by creditors in the US or have assets seized there. Garuda’s total debt now amounts to roughly $5.1 billion.
Reviving the national airline is a top priority for the Indonesian government, because the country relies on air transport for connectivity and to support its tourism industry.
The airline could post net income of around $400 million next year and gradually increases its earnings to $647 million in 2026, according to a projection by Indonesia’s finance ministry this month.