JAKARTA (Yosefardi) – State management company PT Perusahaan Pengelola Aset (PPA) proposes the closure of business operation of the state owned PT Merpati Nusantara Airlines.
However the government of Indonesia gives time to the airline to restructure its debt by seeking strategic partners and making a business plan as the requirement of getting non cash capital placement from the government.
PPA views that Merpati will continue suffering losses as its aircraft fleet and routes are not sufficient for making such a profit.
Currently, Merpati’s debt totals Rp6.7 trillion. Under proposed debt restructuring scheme, Merpati proposes to convert its debt into equity. Its creditors are PT Pertamina, PT Angkasa Pura I, PT Angkasa Pura II, and PT PPA. It also has subsidiary loan agreement to government of Indonesia, private lenders and lessors.