PT Garuda Indonesia ,Indonesia’s biggest airline,won bondholder permission on for a debt restructuring that helps paves the way for aninitial public offering to fund fleet expansion and acquisitions.
Investors meeting in Singapore approved the state – owned carrier’s plan to buy back US$122 millions of bonds for as much as 70 cents on the dollars.
Garuda will also seek to buy Rp.146,4 billions [US$ 16 millions] of notes
Garuda,which aims to double its fleet to 103 planes by 2013,acquire local rivals and fly to new destinations in Japan. South Korea and Europe,has said it will raise as much as $400 million from a share sale delayed since 1998.
The airline received a Rp 1 trillion capital injection from the government in 2006 to help it keep it flying and has been negotiating with investors over bonds that were not redeemed at their due date 2007.