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 · A Pigeon Looking for a New Roost
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

A Pigeon Looking for a New Roost

Overburdened with Debt, Government Seeks to Divesting Itself of Merpati Nusantara Airlines


Bali News: A Pigeon Looking for a New Roost
Click Image to Enlarge

(7/14/2013)

Indonesia’s Minister of State-Owned Enterprises Dahlan Iskan has confirmed the Government’s intention to sell off the shares of Merpati Nusantara Airlines as a last-ditch step to save the debt-ridden airline.

Quoted in Bisnis.com, Dahlan said before meeting the National House of Representatives (DPR) on Thursday, July 11, 2013, “The option of releasing shares by inviting a strategic investor is being done because efforts at restructuring the company have not yielded satisfying results.

The decision by the government to divest itself of the troubled airline remains one of the few remaining steps available to save the air carrier. Candidate investors are invited declare their intent and submit proposals to the Ministry of State Owned Enterprises (BUMN) – the agency that holds Merpati’s shares on behalf of the Government.

He went on to explain that in addition to simply declaring an interest in acquiring Merpati investors should also summarize their vision for rescuing the national flag carrier.

The BUMN has tried repeatedly to restructure the Airline’s business through cash injections, staff reductions, relocation of the carrier’s head office and rescheduling the debt of Merpati through a debt to equity swap.
In December 2011, Merpati received a cash injection from the government totaling Rp. 561 billion (US$5.6 million). A 2012 request for an additional cash injection of Rp. 250 billion (US$2.5 million) remains unanswered by the government to this day.

A restructuring team has been unsuccessfully trying to deal with major creditors that include PT Pertamina (fuel), PT Angkasa Pura I and PT Ankasa Pura II (airport charges) and PT Perusahaan Pengelola Asset. There are the additional complication of subsidiary loan agreements owed to the government, debt to the private sector and to aircraft leasing companies.

Dahlan freely admits that Merpati Nusantara’s financial condition has become critical with debts now approaching Rp. 6 trillion (US$600 million).

Earlier, it was reported in the press that a toll road company was interested in purchasing Merpati’s shares. “But, after we investigated there is apparently no letter or proposal that has been submitted to that effect,” said Dahlan.

Dahlan now waits for a serious expression of interest from a party interested in acquiring Merpati Nusantara Airlines. “Whoever that may be, whether it be a foreign or domestic company, please let us know. The new investor can be from any sector and does not necessarily need to be an airline,” urged the Minister. 

Minister Dahlan’s invitation to foreign investors is apparently preconditioned on the understanding that foreign ownership of any Indonesian airlines cannot exceed 49% of all shares.


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


 
 
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
Dry Brollies in Bali
Bali Weather Forecasters Predict Delayed Rains to Finally Fall in November
(10/27/2014)
In Bali Exquisite Music is Child's Play
Twice Weekly Performance of Ancient Balinese Music in Sanur Through February 1, 2015
(10/27/2014)
More is Less
More Warnings About the Disastrous Effects of Uncontrolled Growth in Bali Accommodation Sector
(10/27/2014)
Nusa Penida Conservation Fees to Increase
Klungkung Regency Plans to Increase Entrance Fees for Day Visitors to Nusa Penida by 1,070%
(10/27/2014)
A Failure to Deliver
CEO of Hotel Bali Kuta Residence Facing Trial for Fraudulent Property Deal
(10/27/2014)
Surf's Up
56-Year-Old Australian Dies While Surfing on Kuta Beach
(10/27/2014)
Keeping the Welcome Balinese
Deputy Governor Calls for More Balinese Signage at Airport and Other Key Locations
(10/27/2014)
This Place is for the Birds
Bali Bird Park Celebrates 19 Years of Operations with Special Offers and New Bird Exhibits
(10/27/2014)
Donít Look Now!
Baliís Iconic Panorama at Kintamani Vanishing Behind Illegal Buildings
(10/27/2014)
Baliís Flushed Away Success
3 of 4 Baliís Lakes Now Badly Polluted; Failure to Act Threatens Baliís Supply of Drinking Water
(10/27/2014)
Seeking Permission to Land
Malaysian Airline Flight Makes Emergency Diversion to Bali When Passenger Goes into Labor
(10/27/2014)
Murder at Bali Emerald Villas in Sanur, Bali
Long-Time Bali Resident Bob Ellis Murdered in What Police Believe was Murder-for-Hire Scheme Orchestrated by His Wife, Noor Ellis
(10/24/2014)
All [News]!