(BLOOMBERG) – Troubled flag carrier Garuda Indonesia faces a key deadline on Thursday with a payment on its Islamic debt that will reflect its ability to deal with a financing crunch.
The South-east Asian airline has been trying to avoid bankruptcy as it struggles with the decimation of the global travel industry due to the pandemic. The government said early this month that it’s considering a debt standstill for the carrier to allow it to restructure.
The state-owned company missed the distribution payment on a US$500 million sukuk on June 3, and the 14-day grace period ends on Thursday. The Sharia-compliant note due in June 2023 has dropped around 35 cents on the dollar so far this month to a record low of about 41 cents, prices comp…
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