JAKARTA (TheInsiderStories) – Indonesia Stock Exchange (IDX) has temporarily suspended trading of Mandiri Asset Backed Securities (ABS) or state-owned airlines company, PT Garuda Indonesia Tbk (IDX: GIAA) and investment fund, PT Mandiri Manajemen Investasi (MMI). This suspension is calculated from the first trading session on Monday (07/27) until further announcements.
This decision was taken after the company announced there was a delay on the amortization payment for the ABS. On that basis, the IDX in its statement decided to suspend the GIA01 trading in the trading system from the first trading session on July 27 until further Exchange announcements.
Supposedly, the amortization payment to ABS-holders was carried out today with amount of Rp360 billion. The number of securities before the second amortization was recorded at Rp1.44 trillion.
For background, on June 22, 2018, Garuda entered into an agreement to issue securities rights on revenues of the ticket sales for Jeddah and Madinah flights with a tenure of five years with total values of Rp2 trillion.
The instruments consist of Class A worth of Rp1.8 trillion and Class B Rp200 billion. This instrument received an AA+ rating from PT Pemeringkat Efek Indonesia with a yield of 9.75 percent per annum, which will mature on July 27, 2023.
In its information disclosure on July 16, Mandiri Manajemen Investasi mentioned the decline in Garuda‘ financial performance and the global SUKUK restructuring that the company recently carried out had an impact on the company’s ability to pay its obligations towards GIAA01.
MMI management emphasized, that the uncertainty experienced by the flight carrier at this time was the COVID-19 pandemic which caused the company to experience a decline of 30.14 percent. The company again recorded a business loss of up to $120.16 million in the first quarter of 2020.
This decrease in performance was due to scheduled flights which dropped significantly, even though it contributed up to 85.21 percent of Garuda‘ total revenue. While, 14.10 percent contributed by other income also fell 36.96 percent in the period.
“The reduced operational and financial performance of GIAA has the potential to reduce the ability to pay obligations to holders of the EIA Mandiri GIAA01,” said MMI in a statement.
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