Jakarta (ANTARA News) - PT Garuda Indonesia plans to restructure its debts to the European Credit Agency (ECA) in the next two weeks.

Its president director, Emirsyah Satar confirmed to the press on Friday saying "yes, that`s right. We will meet them there (in Europe) in two weeks."

He said that the terms and conditions for restructuring the debts to ECA had been prepared for approval by the two parties. "It is only waiting for an agreement," he said.

The number-one man in the state-owned airline company admitted that the debt would likely be restructured for another seven years starting this year.

Based on a previous restructuring, the company`s debts are expected to be repaid fully totaling US$650 million in the first semester of 2009.

Garuda`s EVP for Finance Eddy Purwanto on the occasion said that of the total debts of the company reaching US$650 million by December 2008, US$450 million was in foreign currency and the rest or around 40 percent in the rupiah.

The company`s debts also include those to holders of Singapore floating rate notes (FRNs) totaling US$450 million.

Emirsyah once said that the current global crisis had affected the liquidity of almost all companies.

"The global crisis drives a change in the scenario of company debt restructuring," he said.

In 2009 the company sets a capital expenditure of US$100 million, rising from around US$20 million in 2008.

The funds are partly used for increasing the fleet. In 2009 a total of 18 planes will be delivered consisting of 14 Boeing 737-800s and four Airbus 330s.

The plan is part of the efforts to increase the company`s fleet from at present 66 to 116 until 2014.

Regarding the planned initial public offering in 2010 Emirsyah said the company hoped it could collect between US$300 and US$400 million by selling up to 40 percent of its shares.

"The proceeds will partly be used to expand business as its debt is already restructured," he said.

Only after that its plan to spin off its subsidiaries will be carried out, he said. "Some still have yet to be developed through strategic partnership or internal efforts," he said. (*)

Editor: Jafar M Sidik
COPYRIGHT © 2012

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