Jakarta. Flag-carrier Garuda Indonesia has dropped a plan to issue dollar-denominated Islamic bonds, or sukuk, this year as the scandal-ridden airline projected it would fail to complete its financial report in time for shareholders' approval. 

The airline announced the plan to issue the sukuk last month as part of an effort to pay off debts due this year. There were three options explored: issuing $750 million-worth of global sukuk, private placement bonds to the same value or attracting $500 million from a peer-to-peer lending scheme. 

Garuda's acting president director, Fuad Rizal, said the airline is unlikely to complete a limited review of its interim financial report in time for a shareholders' general meeting. 

"Although the sukuk issuance has been canceled, [Garuda] is currently assessing other funding alternatives to realize its goal to refinance debts due a year from now to comply with regulations," Fuad said in a statement on Sunday. 

Fuad said Garuda has a total of $850 million in debts due this year.

Garuda's shareholders will meet on Jan. 22 to decide on a refinancing plan and appoint a new management team after State-Owned Enterprises Minister Erick Thohir removed five of its directors for their alleged involvement in smuggling a vintage Harley Davidson motorcycle and Brompton folding bicycles late last year.

Fuad said Garuda was targeting a net profit of $71 million and revenue of $5.4 billion in 2020, lower than last year's projection since the company has to account for new setbacks, including the recent end of its partnership with Sriwijaya Air, which has reduced some of its potential revenues. 

Garuda gained a net profit of $123 million in the first nine months of last year, compared to a $110 million loss in the same period a year earlier. It pocketed revenues of $1.34 billion, up 10 percent compared to $1.22 billion in the third quarter of 2018.