MANDALA Airlines looks set to survive its financial meltdown after a voting session last Thursday saw 304 out of 344 debtors agreeing to convert monies owed to them into shares in the company.

The session was held after earlier efforts to get debtors to back Mandala’s debt restructuring programme failed (TTG Asia e-Daily, February 23).

While this signals a positive step forward for the airline to return to normal operations with new investors, travel agents are still skeptical after losing out when AdamAir was declared bankrupt in 2008.

Association of the Indonesian Tours and Travel Agencies Jakarta chapter chairman Herna Danuningrat said: "We want our members' money back first, and then we will renegotiate terms and conditions to get a win-win solution."

Mandala president director Diono Nurjadin said the voting results would be submitted to the courts, who will have the final say on March 2 on whether the airline will be declared bankrupt.