Garuda International’s $9.5 Billion Restructuring Plan

Cleary Gottlieb Steen & Hamilton advised Garuda International on the deal.

Garuda Indonesia (“Garuda”), the flag air carrier of Indonesia, announced its plan to restructure Rp142 trillion ($9.58 billion) in outstanding debt, which was ratified by the court overseeing the proceeding on June 27. The ratification follows a successful vote by creditors with more than 95% approving the plan on June 17.

As a result of the plan, Garuda will significantly reduce its liabilities by restructuring outstanding debts owed to aircraft manufacturers, lessors, maintenance vendors and certain bond investors, and will exchange the remaining liabilities with $825 million in nine-year bonds and $330 million in new equity. The plan also sets out new lease terms for Garuda’s post-restructuring fleet of planes.

The New York, London and Hong Kong-based Cleary team advising Garuda included partners Richard Cooper (Picture) and Polina Lyadnova, counsel Robert Williams, senior attorney Carina Wallance, and associates Jonathan Griggs, Sarah Haddad and Nicholas Koeppen.

Involved fees earner: Richard Cooper – Cleary Gottlieb Steen & Hamilton; Jonathan Griggs – Cleary Gottlieb Steen & Hamilton; Sarah Haddad – Cleary Gottlieb Steen & Hamilton; Polina Lyadnova – Cleary Gottlieb Steen & Hamilton; Carina Wallance – Cleary Gottlieb Steen & Hamilton; Robert Williams – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Garuda International;