Indonesia Stock Exchange May Delist Garuda Indonesia

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Indonesia’s stock exchange has warned it might delist national flag carrier Garuda Indonesia, whose shares have been suspended since June after it defaulted on a US$500 million Islamic bond.

The bourse in a statement late Monday (Dec 21) cited rules that it could remove a company’s shares if it is experiencing legal or financial trouble that will impact its business continuity, or if its shares have been suspended for at least 24 months.

It did not explicitly say why Garuda was warned, but it noted in the statement that the airline’s shares have been suspended for more than six months.

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Garuda’s chief executive Irfan Setiaputra said the company will respond to the bourse’s warning in a statement later.

In a news conference on Monday, Irfan said Garuda has come up with debt restructuring proposals that it would present to lessors and creditors to renegotiate its US$9.8 billion debt, including by offering zero coupon bonds, selling new notes or issuing new stocks.

The airline is undergoing a Jakarta court-led debt restructuring after an information technology company petitioned the court over unpaid liabilities.

Garuda booked a US$1.66 billion loss in the first nine months of 2021, according to the company’s unaudited financial statement.

Source: CNA