JAKARTA (TheInsiderStories) – The state airlines, PT Garuda Indonesia Tbk (IDX: GIAA) has complete the debt restructuring with some of lenders, PT Angkasa Pura 1 (AP 1), PT Angkasa Pura 2, PT Pertamina, and others. The issuer has total debts US$621 million for the three government-owned companies and the other creditors.
The CEO of the company, Irfan Setiaputra, said the lenders has extended the loans for another three years period. In details, Garuda has trade payable to Pertamina $532.05 million, AP 1 worth of $34.02 million, AP 2 around $27.21 million, and other parties $27.36 million. There are also lease obligation to AP 2 of $14.50 million and AP 1 of $94,883.
With the restructuring, it hoped that will support the management efforts to restore the financial condition of Garuda. Earlier, on Dec. 28, 2020, the flight carrier officially received the first phase of disbursement of Rp1 trillion of funds from the issuance of mandatory convertible bonds (MCB) from state firm, PT Sarana Multi Infrastruktur.
The bonds will be converted seven years later into share ownership through the mechanism of private placement. Based on the initial prospectus, this private placement price will be executed at a price of Rp206 a share.
Garuda plans to releases MCB with a total value of Rp8.5 trillion in stages. The capital injection has been regulated through the minister of finance decree Number 118/PMK.06/2020 concerning the government investment through national economic recovery program.
Setiaputra stated, that all the MCBs will be converted in seven years period until 2027 into share ownership through the private placement mechanism. Based on the initial prospectus, the notes will be executed at Rp206 a share, determined of 90 percent of the average closing price of for 25 consecutive days from Oct. 13.
The number of shares to be issued is 41.26 billion shares and the series B shares and will diluting 61 percent decrease in ownership. He said, the funds were used to restore Garuda‘ financial condition amid the pandemic. This also considers the role of the company in the connectivity of the flow of goods and passengers, domestically and internationally.
He revealed, with the entry of the fresh funds will increases the asset values and the company’ net working capital. Recently, the Indonesian government has lowered the dividend targets of SOEs from Rp65 trillion to Rp26.13 trillion in 2021 or down 40.34 percent of this year’ targets.
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