Close
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 · Garuda Presents a Formal Debt Rescheduling Request
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

Garuda Presents a Formal Debt Rescheduling Request

Indonesian Air Carrier's Crippling Debt Burden Tied to Questionable Price Paid for Six A300-300 Aircraft Between 1988-1992.


Bali News: Garuda Presents a Formal Debt Rescheduling Request
Click Image to Enlarge

(7/21/2007)

Garuda Indonesia have presented a formal scheduling proposal to JP Morgan and other creditors in an effort to address its massive debt incurred in the purchase of six Airbus A330-300 aircraft between 1988-1992.

Bisnis Indonesia reports that Garuda's debt imbroglio dates from the purchase the six Airbus A300-300 between 1988-1992 with a unit cost of US$214 million and a total tally of US$1.2 billion. Using the 2003 price for the subject aircraft of US$140 million reports the newspaper, the natural conclusion suggests a mark up of US$74 million per airplane resulting in a projected total loss of US$444 million to the Government.

Data provided by the Ministry for State-Owned Enterprises to Commission XI of the House of Representatives (DPR) indicate that Garuda's debt as of June 30, 2007, stands at US$737.38 million.

In addition, these are syndicated loans owed to Bank Mandiri of Rp. 60 billion (approximately US$6.5 million) and a loan from Bank Negara Indonesia of Rp. 130 billion (approximately US$14.1 million) Ė both in payment suspension until at least December 2007.

The Secretary of the Ministry for State-Owned Enterprises (BUMN), Muhammad Said Didu, confirmed to Bisnis Indonesia that Garuda must begin selling non-productive assets in order to assist current restructuring steps. "We (BUMN) will purchase Garuda's headquarters which will now move to Cengkareng," explained Didu.

He went on to confirm that the Government remains steadfast in its intention to sell Garuda to a well-heeled strategic partner who can add value to the airline's operations.

Garuda has currently budgeted US$1.6 million to rent two Boeing 737-800NG to help meet growing demand. Those funds have been allocated from a recent US$52.5 emergency cash bailout provided by the Government. The two new aircraft are expected to enter service during the third and fourth quarters of 2007.

Garuda is targeting to carry 2.53 million passengers in 2007, an increase of around 15% from the number carried in 2006.

Related Stories

[Garuda Selling off its Bits and Pieces]

[Can We Pay Later, Please]


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


 
UBUD WRITERS & READERS FESTIVAL
 
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
Weíre Going to Change the World!
Young People Invited to Joining Baliís Global Initiatives Networking Conference at Canggu Community School October 3-5, 2014
(9/20/2014)
Flying High and Fancy with Garuda
Garuda Indonesia Named as Best Passenger Experience in Asia Pacific Region
(9/20/2014)
Chicago Lovers Come Clean in Bali
Bali Police Say Tommy Schaefer and Heather Mack Confess to Roles in Murder of Chicago Socialite Sheila von Weise Mack
(9/20/2014)
Factory Direct
Bali Police Raid Two Narcotics Factories in Denpasar and Buleleng
(9/20/2014)
Cleared for More Landing?
Deputy-Governor of Bali Calls for Extra Runway at Islandís Airport
(9/20/2014)
Longer Hauls; Lower Fares
Indonesia AirAsia Targets Offering Long-Haul Low-Cost Flights to Australia by End of 2014
(9/20/2014)
An Enigma of Non-Arrival
Nobel Laureate V.S. Naipual Removed from Program for 11th Ubud Writers and Readers Festival
(9/20/2014)
Happy Landings Galore
Operator of Baliís New Airport Claims it to be the Most Beautiful in the World
(9/20/2014)
When the Past is Pasta
Uma Cucina at Uma by Como Ubud Celebrates its First Anniversary with Three Italian Culinary Events
(9/20/2014)
They Have to be Carefully Taught
Bali Officials from Badung Regency Allow Illegal Villas in North Kuta to Continue Operations
(9/20/2014)
Is the Under Over?
Plans for Pedestrian Underpass at Ngurah Rai Statue Park Now in Doubt
(9/20/2014)
Merpati at an Impasse
Out of Cash with No Assets Left to Sell,ia Merpati Airlines Beyond Redemption?
(9/20/2014)
All [News]!
 
Tourism and Transport Tourism Agents