Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Can We Pay You Later, Please?
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Can We Pay You Later, Please?

Garuda Gets a Repayment Holiday of Two Months While Negotiations Continue on Debt Restructuring. Questions Still Linger on Why Garuda Paid So Much for Six A330-300s Between 1988-1992.


Bali News:
Click Image to Enlarge

(7/2/2007)

Garuda Indonesia's major creditors in Europe have agreed to allow the national air carrier to miss 2 months of payments on its outstanding debt of US$794 million.

Quoted in the Indonesian language Bisnis Indonesia, the Minister for State-Owned Enterprises, Sofyan A. Djalil defended the Airline's improving operations and profitability. The Minister also confirmed that meetings have been held with European creditors in France, Germany and the U.K. to discuss a restructuring of the Company's debt, securing a repayment holiday of two months while negotiations continue.

The creditors all members of the European Credit Agency (ECA), have received a detailed proposal from Garuda for a restructuring of debt that will allow the purchase of new Airbus aircraft.

The medium term plans for Garuda call for debt relief, improved operational efficiencies and plans to take the Airline public in 2009.

Dirty Debt?

Much of Garuda's current financial difficulties trace to the purchase of six Airbus A330-300 aircraft between 1988 1992 at a per unit cost of US$214 million. Industry observers, however, point to indications of a substantial "mark-up" in the market price of a new Airbus A330-300 - thought to be closer to US$140 million per plane. The US$74 million "overpayment" for the six aircraft, if substantiated, represents an unnecessary additional initial principal debt burden of US$444 million for the airline.

Results of an internal audit launched in mid-2006 by Garuda Indonesia to investigate the "mark up" allegations in the purchase of the six Airbus A330-300 have yet to be made public.

Garuda's failure to be completely transparent in the details of the purchase and alleged "mark-ups" and move against those responsible for inflating their debt is seen by many as one of the major stumbling block in please by the Airline for a reduction or "haircut" in the debt owed to the Europeans.

Rajawali No Longer Courting Garuda?

Meanwhile, Bisnis Indonesia reports that the Rajawali Group has decided to disband a consortium prepared to spend between US$300-US$400 million for share in Garuda Indonesia. Delays in disinvestment plans by the Government for the national carrier have caused the group to divert the funds earmarked for the Airline to more immediate mining and plantation projects.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Plaga Wine
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
A Record Year
Bali by the Numbers: Bali Tops 4 Million Visitors in 2015
(2/7/2016)
Enter the Year of the Monkey
Bali Expecting a Surge in Chinese Visitors for Lunar New Year
(2/7/2016)
When Helping Others is Highly Fashionable
Bali Smile Foundation Fashion Show Sales and Fund Raiser in Ubud, Friday, February 28, 2016
(2/7/2016)
The Evil of Advertising
Denpasar Government Begins to Dismantle Roadside Advertising for Cigarettes
(2/7/2016)
Reclaiming Sanity
Tourism Experts Warn Reclamation of Benoa Bay will Only Worsen Critical Over-Supply of Hotel Rooms in Bali
(2/7/2016)
Interview: Rainy Hendriany Foreign Ownership Update
Foreign Property Ownership in Indonesia One Step Forward and Two Steps Back?
(2/7/2016)
Half a World is Now Just One Flight Away
United Airlines to Introduce 15-Hour Non-Stop San Francisco to Singapore in June 2016
(2/7/2016)
London Calling
Garuda Indonesia to Fly to London from Jakarta Starting March 31, 2016
(2/7/2016)
Drawing Lines in the Sand
Villagers Issue Deadline Ultimatum of March 20, 2016 to Hotel InterContinental Canggu
(2/7/2016)
Pass the Popcorn!
10th BALINALE Bali Film Festival September 24-30, 2016
(2/7/2016)
Tiger Shows it Stripes
TigerAir Reveals the Look of Planes to be Operated on Oz to Bali flights.
(2/7/2016)
Slow Wheels of Justice
Australian to Face Trial for Criminal Assault Committed in 2013
(2/7/2016)
All [News]!