JAKARTA, KOMPAS.com - Indonesia's troubled budget-carrier PT Mandala Airlines will temporarily cease operations Thursday, while it plans to restructure its debt and seek strategic investors, the company said Wednesday.

“We will file a debt restructuring request to the Commercial Court tomorrow (on Thursday). This is the best step to safeguard Mandala's future,“ the airline's President Director Diono Nurjadin told a news conference.

“We will cease operations temporarily so we can focus on debt restructuring and invite several potential investors,“ Nurjadin added. Mandala will stop all its flights from Thursday, at 0600 local time (2300 GMT Wednesday).

He didn't elaborate on the amount of debt and to which parties it is owed. Separately, an official at the transport ministry said that Mandala's operation will be halted for the next 45 days. And should its restructuring plans deemed sufficient, the ministry will allow Mandala to resume operations.

Mandala is 51%-owned by PT Cardig International and 49% by Arizona-based Indigo Partners LLC, according to its website. An airline spokeswoman said the carrier stopped renting six aircraft in March as costs were too high, and currently operates five aircraft.

“We're optimistic we can find new investors and meet the minimum requirement of 10 aircraft by 2012,“ she added.

Industry analysts have previously said the country's aviation industry will need to consolidate in the near term as capital requirements and costs, notably fuel prices, continue to rise.

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