Garuda Indonesia (GA, Jakarta Soekarno-Hatta) now faces a geographic extension of its legal and financial woes to Australia, where it has been sued for allegedly failing to meet lease payments for two of its aircraft.
Two Ireland-based designated activities companies, Greylag Goose Leasing 1410 and Greylag Goose Leasing 1446, both of which are managed by New York-based private equity firm Avenue Capital Group, have filed for liquidation against the airline in the Supreme Court of New South Wales. In Sydney.
Garuda Indonesia revealed in mid-July that it had received appeals from the two donors against the results of its bankruptcy protection proceedings (Penundaan Kewajiban Pembayaran Utang – PKPU), from which it had emerged the previous month. The leases were for the A330-300 PK-GPQ (msn 1410) and PK-GPR (msn 1446), both currently in storage at Jakarta Soekarno-Hatta.
The re-suit for the special purpose vehicles in Australia was filed on August 17 and Garuda was notified the next day through its branch in the capital of New South Wales, as the carrier described in a letter, coded GARUDA/JKTDZ/21616. /2022, attached to a filing on the Indonesia Stock Exchange on August 20.
Listed under “Legal cases against materially impacting issuers or public companies”, the letter stated that “the liquidation (bankruptcy) lawsuit has been filed in the Supreme Court of New South Wales, Australia , where in the lawsuit the petitioner claimed that the company had been unable to meet its obligations related to aircraft rental costs.
The first cassation appeals had been filed in Jakarta despite the fact that “95.07% of the total creditors approved the reconciliation plan proposed by the company”, deplores the letter. The letter was addressed to officials of Indonesia’s Financial Services Regulatory Authority as well as the stock exchange.
“There is no direct impact on the operational activities of the company, and the company ensures that all operational activities are carried out as normal. The company will respond with caution and wisdom, including reviewing the lawsuit with its legal counsel in Australia to determine what steps to take in the liquidation trial,” he said.
As for its ongoing pursuit of a settlement with creditors, Garuda Indonesia said it has “opened a chat room as part of the PKPU process which is part of the company’s efforts [towards] the settlement of its commercial obligations taking into account the aspirations of creditors which are also aligned with the capacities of the company.