Garuda Indonesia's creditors have submitted claims worth around Rp198 trillion (~USD $13.8 billion) as part of the Indonesian flag carrier's debt restructuring program.

Reported in Bloomberg and Edge Markets Malaysia, the court-appointed administrators of the airline's debt restructuring process received claims from more than 470 creditors prior to deadline set on January 5. The verification of claims will through January 19.

The Indonesian flag carrier is currently undergoing court-led debt restructuring program with a Jakarta court as it faces the challenges presented by the COVID-19 pandemic. The airline has around USD $9.8 billion in outstanding liabilities, which includes a USD $500-million Islamic bond the airline recently defaulted.

The airline's restructuring program plans for a reduction of its liabilities by more than 60% - from USD $9.8 billion to USD $3.7 billion. Along with restructuring its finances, Garuda Indonesia is also making adjustments to its fleet and flight network.

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