(Bloomberg) -- PT Garuda Indonesia filed for Chapter 15 bankruptcy protection in the Southern District of New York court, as the debt-laden carrier tries to secure its future profitability. 

The document is dated Sept. 23. The submission comes as the airline, having completed a court-supervised debt restructuring in Indonesia to halve reduce its debt load, tries to capitalize on the rebound in international travel.  

Non-U.S. companies commonly file for Chapter 15 bankruptcy to ensure they won’t be sued by creditors in the U.S. or have assets seized there.

Garuda’s total debt now amounts to roughly $5.1 billion, President Director Irfan Setiaputra told parliament in Jakarta on Monday.

Reviving the national airline is a top priority for the Indonesian government, because the country relies on air transport for connectivity and to support its tourism industry.

The airline could post net income of around $400 million next year and gradually increases its earnings to $647 million in 2026, according to a projection by Indonesia’s finance ministry this month. 




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