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Garuda filed the Chapter 15 case late last week at a New York bankruptcy court, CEO Irfan Setiaputra told Reuters.
Chapter 15 provides for cooperation between U.S. and foreign courts, if there is a U.S. financial interest in proceedings.
Garuda and its creditors agreed to halve its debt to about $5 billion in a deal overseen by a bankruptcy court in Jakarta in June.
However, the carrier’s restructuring agreement is currently being challenged in the country’s Supreme Court by an Ireland-based aircraft lessor, Greylag Goose Leasing and no decision has been made so far.
The lessor has previously objected to the calculation of their claims at around 2.3 trillion rupiah ($152.07 million) in the restructuring agreement.
In a parliamentary hearing on Monday, finance ministry senior official Rionald Silaban said one of Garuda’s lessors Boeing (NYSE:BA) had yet to participate in the restructuring plan, but said the U.S. planemaker “will eventually participate”.
Claims from Boeing to Garuda are estimated at $822 million.
Boeing did not immediately respond to request for comment.
($1 = 15,125.0000 rupiah)
