Monday, September 28, 2009

Govt take responsible for Garuda debt

The government is responsible for the remaining debt of PT Garuda Indonesia to PT Bank Mandiri Tbk worth IDR2.26 trillion as from the outstanding debt of Garuda to Mandiri worth US$103 million.
Director of Bank Mandiri Abdul Rahman said following the full payment of debt, Garuda could become the debtor of the bank.
"We are ready to help ease Garuda financing let alone amidst the better finance situation. Even for IPO, we expected to involve Mandiri Sekuritas to help Garuda IPO and we could help stock marketing to public."
Having got approval from BI, Bank Mandiri could have promptly the conversion. Concerning with the divestment strategy of Garuda to public, Abdul has not been sure whether or not it is done jointly with the IPO or sold to secondary market.
In the IPO, Garuda plans to sell 49 percent shares at maximum to market targeting some US$400 million or IDR4 trillion.
Bank Mandiri formerly proposed Garuda MCB oustanding debt worth IDR1.01 trillion plus internal rate of return (IRR) of 18 percent with ad-on rate so that the total debt stands at IDR3.36 trillion with Garuda stock conversion of 28.8 percent.

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