ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Garuda avoids Thai Airways fate with $500m bond extension

Indonesian carrier awaits state support as condition turns 'critical'

A plane belonging to Garuda Indonesia is seen on the tarmac of Terminal 3, Soekarno–Hatta International Airport near Jakarta.   © Reuters

JAKARTA -- Indonesia's flagship carrier Garuda Indonesia has narrowly avoided defaulting on its $500 million Islamic bonds after agreeing with its creditors to extend the maturity of the debt.

The deal was agreed on Wednesday in a virtual meeting between the company and its bondholders. A statement from Garuda said that creditors holding $454 million, or 90.88% of the outstanding amount, voted in favor of the company proposal of a three-year extension.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more