Indonesia Mandala Proposes Composition Plan

VIVAnews - Indonesia-based PT Mandala Airlines pressed support from creditors over debt composition plan proposed to Commercial Court on Feb 4. Through the plan, new investors may set out a restructuring process to save the firm.

"The management acknowledges that this is the best choice for creditors," Mandala Airlines Managing Director Diono Nurjadin said today, Feb 11.

According to Diono, the composition plan consists of three issues on new investors, conversion of debt into shares and new management.

He said that the company can be acquired if creditors refuse to approve the plan. Should the acquisition take place, concurrent creditors may only get small compensations.

"We're expecting creditors to support the composition plan," he said.

Mandala Airlines decided to suspend all flights for 45 days since January 13, 2011, due to debt issues and other internal affairs.