(Bloomberg) -- PT Garuda Indonesia is scheduled to present a plan on how to resolve its pile of debt, a prelude to a crucial vote on restructuring the distressed carrier’s liabilities.  

Court proceedings are due to begin in Jakarta on Thursday. Details could emerge on how much of a haircut will be imposed on debt holders, how it intends to generate additional cash or the future size of its fleet.

Creditors are expected to vote on the proposal at another court date later this month. 

A key element of the restructuring was made public earlier this week when administrators for Garuda acknowledged claims worth 120.5 trillion rupiah ($8.3 billion).

Like many airlines, Garuda’s business suffered due to the Covid-19 pandemic. It currently is operating only 20% of its pre-pandemic fleet, limiting its ability to raise revenue to repay the debts and compete with its rivals home and abroad as the travel demand recovers.

Garuda said earlier in the year that it wanted investors to take a haircut of 81 cents on the dollar. Once the plan on revamping its pile of debt is approved, the government is proposing a rights issue to raise funds. 

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