Thought you should all know - be carefull - I doubt the government would allow it to go down but you never know. Me - once bitten twice shy - Only Qantus from now on
Deeply indebt to European creditors, [See: Garuda Posts US$70.7 Million Loss for 2005 ], the Airline is scrambling to reschedule debt payments and secure fresh capital injections. Should Garuda fail to secure enough cash to meet its obligations by a March 2006 deadline it faces the possibility of a cross default, being forced into bankruptcy by a creditor seeking relief via the courts, and a possible seizure of six Airbus A-330aircraft operated by Garuda but owned by the European Consortium holding the airline's debts.
On a wider level, economic observers fear that the financial collapse of Garuda might have larger detrimental effects, including a lowering of Indonesia's world-wide credit rating and negative multiplier effects in other segments of the national economy.
Sources report that Garuda's management has prepared 6 separate options to address its current financial imbroglio for presentation to the Presidential Cabinet and National Parliament ranging from debt relief and a cash injection from the Government to the outright liquidation of the Company's assets in order to meet its debt obligations.