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GARUDA INDONESIA - JAKARTA. Indonesia's stock exchange has warned it might delist indebted national flag carrier Garuda Indonesia, whose shares have been suspended since June after it defaulted on a $500 million Islamic bond.
The bourse in a statement late Monday 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.
Garuda is undergoing a Jakarta court-led debt restructuring after an information technology company petitioned the court over unpaid liabilities.
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The carrier's chief executive Irfan Setiaputra said on Tuesday that the debt restructuring, known as PKPU, would allow it to settle its obligations and recover performance.
"We are focusing on making our best efforts in accelerating performance recovery through the PKPU process in order to produce the best agreement in the settlement of business obligations, so that later Garuda shares can be traded as usual," Irfan said in a statement.
Garuda's management held its first meeting with the creditor on Tuesday under the restructuring process, he added.
Irfan on Monday said the airline planned to present to lessors and creditors restructuring proposals to renegotiate its $9.8 billion debt, including offering zero coupon bonds, selling new notes or issuing new stocks.
Garuda booked a $1.66 billion loss in the first nine months of 2021, according to the company's unaudited financial statement.
