JAKARTA, Indonesia : Irfan Setiaputra, CEO of Indonesian flag carrier Garuda Indonesia, has confirmed to a New York bankruptcy court last week that it asked the bankruptcy court to recognize its recent debt restructuring agreement in a Jakarta court under Chapter 15 of the U.S. Bankruptcy Code.
If there is a U.S. financial interest in the proceedings, Chapter 15 smooths the cooperation between the U.S. and foreign courts.
Garuda and its creditors agreed to reduce its debt to $5 billion under the agreement overseen by a bankruptcy court in Jakarta in June.
The country's Supreme Court has challenged the restructuring agreement with Greylag Goose Leasing, an Ireland-based aircraft lessor.
Greylag Goose objected to the calculation of their claims, at some $152.07 million under the restructuring agreement.
Finance ministry senior official Rionald Silaban said Boeing, one of Garuda's lessors, hasn't agreed to participate in the restructuring plan, but will eventually participate. Boeing, whose claims are estimated at $822 million, hasn't responded immediately to requests for comment.