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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.

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