The Indonesia Stock Exchange warned that it might delist shares in the embattled Garuda Indonesia airline, months after the national flag carrier was suspended for defaulting on a $500 million Islamic bond.
The exchange on Monday cited rules that it could remove a company’s shares if it is experiencing financial trouble that could impact its operations or if its shares were suspended for at least 24 months.
The exchange noted that the airline’s shares have been suspended for more than six months, although it did not explicitly mention why it was being warned.
Garuda CEO Irfan Setiaputra said that the company will soon respond to the warning in a statement.
The airline, which is currently undergoing a court-led debt restructuring, has come up with proposals for its creditors to renegotiate its $9.8 billion debt, Irfan said.
Garuda lost $1.66 billion in the first nine months of 2021, according to the company’s financial statements, and the COVID-19 pandemic remains a risk to its recovery.
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