Garuda in $9.5 Billion Restructuring Plan

June 27, 2022

Cleary Gottlieb is representing Garuda Indonesia (Garuda), the flag air carrier of Indonesia, in its plan to restructure Rp142 trillion ($9.58 billion) in outstanding debt, which was ratified by the court overseeing the proceeding on June 27, 2022.

The ratification follows a successful vote by creditors with more than 95% approving the plan on June 17, 2022.

As a result of the plan, Garuda will significantly reduce its liabilities by restructuring outstanding debts owed to aircraft manufacturers, lessors, maintenance vendors, and certain bond investors, and will exchange the remaining liabilities with $825 million in nine-year bonds and $330 million in new equity. The plan also sets out new lease terms for Garuda’s post-restructuring fleet of planes.