JAKARTA (Yosefardi) – Airline company PT Mandala Airlines is formally bankrupt as the Commercial Court of Central Jakarta approved its bankrupt proposal, Bisnis.com reported.

Mandala has total debt of Rp1.3 trillion. Its debt to Roar Aviation Pte Ltd is expected to reach US$111 million.

Tiger Airways Holdings had acquired a 33.0% stake in Mandala in January 2012, and increased it to 35.8% in September 2013 through its wholly owned subsidiary, Roar Aviation Pte Ltd.

Mandala stopped its flight operation since July 1, 2014, and got no interest from new buyers or investors.

Mandala’s Meanwhile key ultimate shareholders are Saratoga Group and PT Cardig International.

Meanwhile the Ministry of Transportation has yet to give update on debt-ridden state airliner PT Merpati Nusantara Airlines (MNA) as its Air Operation Certificate (AOC) is said to have expired by February 1, 2015.

Gatot Trihargo, the State-Owned Enterprises Ministry’s deputy for business services, earlier said Merpati’s AOC could be extended if the airline has made its business plan.

State investment company PT Danareka and the Assets Management Company (PPA) (a state agency overseeing state asset sales) are tasked to select the potential buyers for Merpati.