Indonesia's Garuda given debt restructuring extension

Indonesia's Garuda given debt restructuring extension
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JAKARTA (May 20): A Jakarta court has for the third time extended flag carrier Garuda Indonesia's debt restructuring deadline by another month, a court-appointed curator for the case said on Friday.

Garuda started the court-led restructuring process on Dec 9, after a vendor petitioned the court over unpaid bills. It has repeatedly requested more time to negotiate restructuring terms and verify US$13.8 billion of claims against it.

The state-controlled airline has said the claims were bigger than the US$9.8 billion it has in its books and that it would seek to cut its total liabilities to US$3.7 billion under the process.

Martin Patrick Nagel, one of the curators, in a text message to Reuters said the new deadline was June 20.

It was unclear how many claims Garuda still has to verify and the carrier did not immediately respond to a request for comment. As of March 14, claims worth US$9.72 billion were yet to be verified and another US$885.5 million was in dispute.