Among Investors Seeking to Rescue Mandala Airlines

JAKARTA, KOMPAS.com - Australia's Jetstar is among investors negotiating to bail out Indonesia's debt-laden PT Mandala Airlines, which last month temporarily ceased operations to restructure its debt and seek strategic investors.

Air Transportation Ministry Director General Herry Bakti said at the weekend the other potential investors involved in talks with the airline are Hong Kong-based LCNC and PT Sinarmas Manunggal. Jetstar, a unit of Qantas Airways Ltd. (QAN.AU), was not immediately available for comment.

“They are still negotiating,“ Bakti told reporters. He didn't specify if Jetstar is interested in becoming a strategic investor to operate Mandala.

Mandala, which is 51%-owned by PT Cardig International and 49% by Arizona-based Indigo Partners LLC, earlier this month said it is seeking financial investors to assist with recapitalizing, as well conversion of a substantial portion of its unsecured debt into equity and the entry of a strategic operator to restart its operations.

Mandala has never disclosed its level of debt, but several local media outlets have reported the amount is around $800 million.