Indonesia Airline Merpati Explores Debt-to-Equity Swap, Strategic Investors-CEO

Bareksa.com - Heavily indebted Indonesian state-owned carrier PT Merpati Nusantara Airlines is exploring restructuring options including a debt-to-equity swap and finding strategic investors, its chief executive told Reuters on Tuesday.

"Hopefully final decision could be taken by the government as soon as possible," Merpati chief executive Asep Ekanugraha said in a text message.

State enterprises minister Rini Soemarno said Merpati's fate will be decided in the next few weeks, the Jakarta Post reported last week.

Merpati, which has debt of more than 6 trillion rupiah ($488 million), has been grounded since February, struggling to pay employee salaries, insurance and fuel bills. (Source : Reuters)