Indonesian government injects 30 trillion rupiah into Hawk Air to advance financial restructuring

social dynamics2dys agoupdate PrintEnterprise

0 0

Indonesian investment agency Danantara will inject 30 trillion rupiah into Garuda Indonesia through a Private Placement to help it restructure its finances.The capital injection was executed by Danantara Asset Management (DAM), a subsidiary of Danantara, and was financed through the following sourcesCash injection of $1,441 millionas well as the inclusion of theConversion of $405 million shareholder loan into new sharesThe

The funds will be used to improve the financial position of Eagle Air and its subsidiary Citilink, enhancing liquidity and capital structure to support future business growth. While Eagle Air has reduced its debt and improved its equity as a result of the 2022 restructuring, it continues to face multiple challenges such asFailure to realize the second round of strategic investor financing, failure to record positive equity, rising aircraft maintenance costs, and slow recovery of operational traffic.

As of June 30, 2025, Eagle AirlinesNet working capitalis negative and total liabilities exceed total assets by 80%.Eligible to conduct a private placement of more than 10% of equity. Of the funds raised, 29% was used for working capital and operations of Eagle Airways and Citilink, 37% was used to enhance Citilink's capital, 22% was used for fleet expansion and 12% was used to repay fuel debt owed by Citilink to Pertamina for the period 2019-2021.

Upon completion of the transaction.Public shareholders' ownership will be diluted from 27.46% to 5.03%Danantara, as a major shareholder of Eagle Air, is committed to supporting its growth over the long term and this capital injection demonstrates its confidence in the restructuring of Eagle Air. Eagle Air is scheduled to be restructured inExtraordinary General Meeting on November 12, 2025, seeking shareholder approval.

# Social Dynamics