Indonesia: Corruption suit adds to Garuda’s woes amid debt restructuring

Indonesia’s government filed a lawsuit accusing its flag carrier of corruption, adding to PT Garuda Indonesia’s woes as the airline undergoes a debt restructuring process.

The Attorney General will investigate the allegation submitted by State-Owned Enterprises Minister Erick Thohir on Tuesday. The case is linked to Garuda’s procurement ATR 72-600 aircraft, although Thohir said there are indications of graft involving other suppliers.

The lawsuit adds to the struggling airline’s list of challenges as the company undergoes a court-ordered debt restructuring process. Its creditors submitted about 198 trillion rupiah ($13.8 billion) in claims, which is set to be verified next week.

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