In accordance with the specific nature of the establishment of Flight Navigation Service Organizing Agency (LPPNPI) – where income is only based on revenue from the cost of Aviation Navigation Services/PJNP (single revenue) – the availability of periodic cash inflows is very important for investment financing (rejuvenation and modernization of flight navigation aids), the accuracy of equipment performance navigation (calibration) and reliability of human resources (license and certification).
The Ministry of Transportation recommends that LPPNPI, which is originally a concurrent creditor, become a preferred creditor in the process of the postponement of debt payment obligations (PKPU) of PT Garuda Indonesia Tbk. This could cause trouble considering the amount of other unsecured creditors that could protest with Garuda prioritizing paying its debt to certain creditors.
Garuda’s letter Garuda/JKTDZ/20304/2022 dated February 18, 2022, stated that the plan to settle loans from LPPNPI in the PKPU process was proposed to be settled with loans or long-term loans without collateral (unsecured) with a principal amount of Garuda’s debt, a tenor of up to 22 years and an interest of ~0.1% p.a. Other provisions regarding the long-term loan will be submitted by Garuda to LPPNPI in the near future. LPPNPI participates and gives approval in voting in the discussion and voting meeting on the peace plan, which was implemented on March 15, 2022.
According to reliable sources, the composition of Garuda’s debt as of January 12, 2022, is based on the restructuring agreement in 2021, the initial receivables amounting to IDR 228,300,000,000, while the initial non-restructuring receivables until December 2021 amounted to IDR 164,900,000,000, so the initial receivables reached IDR 393,200,000,000, which will all be restructured.
