Mounting debts have forced PT Mandala Airlines to suspended operations.
The Indonesian low-cost carrier is now seeking to restructure debts and secure strategic backers as it attempts to return to the skies.
President director Diono Nurjadin confirmed a restructuring request would be filed in the Commercial Court in a bid to keep the airline aloft.
Pictured: T Mandala Airlines operates eight aircraft from Soekarno-Hatta International Airport
“We think this is the best step to guard the future prospects of Mandala,” explained Mr Nurjadin.
“We will stop operations temporarily to be able to focus on restructuring the company.
“Over the past few months, Mandala Airlines has been performing at a commercial loss and the situation now is such that we need to restructure the company to pave the way for the entry of new investors.”
PT Mandala Airlines
The Jakarta-based airline did not release details of how much money it owed nor the identity of its creditors.
Mandala is 51-percent owned by PT Cardig International and 49 percent by US-based Indigo Partners LLC.