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:
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.

       

 
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
Kiwi’s Keen on Bali
Air New Zealand Looking to More than Double Passenger Capacity Between Auckland and Bali in 2018
(7/23/2017)
Silhouettes that Break Cold Sweats
Bali Police Install Replica Police Cars on Road Sides to Reduce Traffic Violations
(7/23/2017)
An Unexplained Death
New Zealander Dies After a Night of Drinking at an East Bali Hotel
(7/23/2017)
The Belgium Who Fell From Above
Belgium Tourist Commits Suicide By Jumping from Villa North of Ubud
(7/24/2017)
No Shortage of Oranges
Bali’s Kintamani Orange Prices Drop to Record Lows
(7/23/2017)
Purposely Vague Recollections
Man Beaten By Transvestites and Left Naked in a Bali Field Released from Hospital
(7/23/2017)
Now Infamously Famous
Actor Jeremy Thomas to Have His Day in Court on Charges of Embezzlement and Fraud in Ubud Property Case
(7/23/2017)
A Young Life Gone Up in Smoke
Italian Facing a Dozen Years in Jail for Three Joints of 'Ajapa-japa'
(7/23/2017)
Pursuing Princesses
Princess Cruise Lines Lists Improvements Needed to Attract More Cruise Ship Visits to Indonesia
(7/23/2017)
Tropical Cancer Care
Bali Developing Cancer Treatment Center at Mangusada General Hospital
(7/23/2017)
Arshole Incarceration
Madurese Laborer Get 12-years for Smuggling Methamphetamines Concealed in his Anus
(7/23/2017)
Faulty Towers
Bali-based Resistance to “Bali-Crossing” High Voltage Line Grows
(7/23/2017)
All [News]!