JAKARTA, April 26 (Reuters) - Indonesia's state airline Garuda Indonesia is seeking $936 million from a rights issue that will be held after it completes its court-led debt restructuring, according to its chief executive Irfan Setiaputra.

The debt restructuring is expected to be finalised by May 20, and the company hopes the rights issue will be completed "this year", Irfan said.

The rights issue will be done in two stages, business news website Kumparan reported, citing a document from a parliamentary taskforce overseeing the restructuring process.

The first round will be held in September to raise $527 million to accommodate the recently approved 7.5 trillion rupiah state-capital injection, and the second round near the end of 2022 at $409 million for a "strategic investor".

The funds will be used towards the costs of restructuring, restoration, and for plane leases among others, it added.

In response to the media report, Irfan told Reuters only the first stage of the rights issue, worth 7.5 trillion rupiah ($527 million), has been confirmed to date, while the remaining $409 million will be finalised after the first round.

Like other airlines, Garuda's earnings have been hit hard by the pandemic, forcing the company to launch a major restructuring seeking to slash its debt to $3.7 billion from $9.8 billion.

(Reporting by Stefanno Sulaiman; Editing by Kanupriya Kapoor)