Garuda Indonesia has deferred its payments on a three-year loan from its creditors. The airline is seeking suspension of the debt payments in order to avoid bankruptcy.
According to Reuters, the airline is asking for a longer period to repay the loans. According to the government, the flag carrier is in debt of around $4.5 billion and needs to be restructured and downsized in order to survive.
From Channel News Asia:
Top Copyright Photo: Garuda Indonesia Airways Boeing 777-3U3 ER PK-GII (msn 29145) (SkyTeam) DPS (Pascal Simon). Image: 945220.
Garuda Indonesia aircraft slide show: