Indonesian Garuda last week filed for Chapter 15 Bankruptcy at a New York Bankruptcy court and requested the recognition of its recent debt restructuring deal in a Jakarta court.
Reported by Nasdaq, Garuda and its creditors agreed to halve its debt to around $5 billion, although this is currently being challenged in Jakarta’s supreme court by Ireland-based aircraft lessor, Greylag Goose Leasing, with a decision yet to be made.
Greylag Goose has previously objected to Garuda and its creditors calculation of claims at around 2.3 trillion rupia ($152.07 million). Claims from Boeing, one of Garuda’s lessor’s, to Garuda are estimated at $822 million.
Chapter 15 allows foreign companies to file for bankruptcy in the United States bankruptcy courts if they have assets, property or business in multiple countries, including the United States.