(Bloomberg) -- Creditors gave PT Garuda Indonesia the go ahead on a plan to restructure liabilities worth 142.4 trillion rupiah ($9.6 billion), giving the carrier more financial headroom as it seeks to capitalize on the rebound in international travel. 

More than two-thirds of creditors agreed to the plan -- under which Garuda will issue roughly $800 million of new debt -- in a vote in Jakarta court on Friday. The result is set to receive an official stamp of approval on June 20.

Friday’s vote means the state-backed carrier can proceed with the rights issue to raise additional funds that Kartika Wirjoatmodjo, a Deputy Minister of State-Owned Enterprises, already announced. 

Like many airlines, Garuda’s business suffered due to the pandemic and the carrier entered a court-supervised debt restructuring process late last year. the carrier’s fleet is now just a fraction of what it was before the Covid-19 outbreak, limiting its ability to generate more revenue. 

According to the restructuring plan presented on June 9, holders of the airline’s dollar sukuk would get another sukuk with a 6.5% return, while banks would receive loans with a 0.1% rate of interest. 

Garuda also plans to reschedule the delivery of 13 Airbus A330 aircraft to 2026-2031 as part of its debt reorganization proposal, documents posted on its restructuring website show. 

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