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) – 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
Plain Spoken about Tourism
President-elect Joko Widodo Speaks to Bali About Tourism
(9/1/2014)
Bali Training the World’s Green Leaders
UN Secretary Ban Ki-Moon Visits Bali’s Green School and Praises it Revolutionary Commitment to Sustainability
(9/1/2014)
Walk a Mile in Their Shoes
Macbeth Footwear Teams Up with Solemen to Donate Shoes for the Poor
(8/31/2014)
Gypsy at the Wheel
Widespread Violation of Laws on Taxi Meter Use Damaging the Reputation of Bali as a Tourism Destination
(9/1/2014)
It's a Jungle Out There
Denpasar Zoning and Building Authorities Falling Miserably in the Enforcement of the Law
(9/1/2014)
Tough Rules for Hotel Permits in Kuta, Bali
Bali Stops Hotels on Postage Stamp-Sized Pieces of Land in Kuta
(9/1/2014)
For Fans of Fantinel
Six Outstanding Courses and Paired Wines from Fantinel of Northeast Italy at Ju-Ma-Na Restaurant – Banyan Tree Ungasan, Bali on Friday, September 19, 2014
(8/31/2014)
A Park for Pedestrians
Pedestrian Underpass at Ngurah Rai Monument at Bali Airport Set to Open in Early 2015
(8/31/2014)
We've Got Rhythm!
Bali's Famous and Inspiring Kecak Dance Has a Rich and Varied History
(8/31/2014)
Run for Someone Else’s Life
14th Chapter of Hard Rock Hotel Bali Rock ‘N Run 5 Kilometer Fun Run Sunday, November 2, 2014
(8/31/2014)
In Style and Safety to Gili Trawangan
Bounty Cruises Mounts Luxury Daily Departures from Bali to Gili Trawangan
(8/29/2014)
In Urgent Need of Connections
PLTU Celukan Bawang Aiming to Start Producing Electrical Power for Bali in December 2014 - a Year Behind Schedule
(8/31/2014)
All [News]!
 
Tourism and Transport Tourism Agents