Declared bankrupt, Merpati Airlines to auction off its assets to meet its obligations

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Merpati
An aircraft owned by Merpati Airlines. (Source: Merdeka)

Jakarta, IO – PT Merpati Nusantara Airline (Persero) will auction off all of its assets to fulfill its obligations to its employees after being declared bankrupt by the Surabaya District Court on June 2. In its rulings, the court also canceled PT. Merpati Nusantara Airlines’ homologation, and appointed a supervisory judge to oversee the management and settlement of debtor assets, as well as a curator to carry out the Merpati Airlines bankruptcy process.

“With the cancellation of the homologation agreement, Merpati Airlines’ obligations to third parties including severance pay to ex-employees will be settled from the sale of all Merpati Airlines assets through an auction in accordance with the court’s decision with due regard for justice for all parties,” said President Director of PT Perusahaan Pengelola Aset (PPA) Yadi Jaya Ruchandi, as reported by CNBC Indonesia, Tuesday (7/6).

PPA was the SOE appointed by the government to find solutions to Merpati Airlines’ woes. Yadi hopes all parties can respect and support the ongoing legal process.