22.02.2021 - 22:09 UTC
Malaysia Airlines (MH, Kuala Lumpur Int'l) parent Malaysia Aviation Group (MAG) has said it would proceed with a MYR3.6 billion ringgit (USD890 million) restructuring plan after obtaining approval at the High Court of Justice in London on February 22 for a deal with a majority of its lessors.
The court sanctioned the debt restructuring scheme under Part 26 of the UK Companies Act 2006, the group said. Part 26 is a section of the act that governs “arrangements and reconstructions.”
“The scheme received the unanimous support of the relevant lessors and represents an important component of MAG’s wider restructuring exercise which will achieve a reduction in MAG’s liabilities of over MYR15 billion [USD3.71 billion],” it said. “Operating lessors have continued to support the airline with a reset of lease rates and deferrals.”
Under the restructuring exercise, which is expected to be completed in early March, the airline expects to strike bilateral agreements with lessors, spare-engine lessors, maintenance providers, corporate lenders, and Malaysian government-related entities.
“Now that the scheme has been formally sanctioned...
22.01.2021 - 01:31 UTC
Malaysia Airlines (MH, Kuala Lumpur Int'l) parent Malaysia Aviation Group has obtained court approval in the United Kingdom to proceed with a major component of its “comprehensive” debt restructuring efforts, it said in a statement issued late on January 20.
Late last year, the group issued a Practice Statement to some of its creditors revealing the company’s intention to file a “scheme of arrangement”, a court-approved deal under UK law between a company and its shareholders or creditors related to their rights.
A hearing was held, as scheduled, on January 20 and the court allowed the group to convene a meeting of creditors to consider the proposed scheme. The outcome of that meeting, whose date was not disclosed, will be reported back to the court at a sanction hearing set for February 22.
The group claimed that its “active discussions” with all key stakeholders meant it had “managed to obtain overwhelming support” to carry out its MYR16 billion ringgit (USD3.97 billion) debt restructuring, but “there remains a small minority of creditors that have...
08.01.2021 - 20:33 UTC
Malaysia Airlines (MH, Kuala Lumpur Int'l) parent Malaysia Aviation Group (MAG) expects to complete its protracted debt restructuring process by the end of the first quarter of 2021, it summarised in a statement on January 6.
It is nearing the end of its MYR16 billion ringgit (USD3.96 billion) debt restructuring plan, it said, in which it has been in talks with about 40 creditors, lessors, and suppliers to take a haircut on their outstanding debts.
“Good progress has been achieved with full support by a large majority of its creditors for a consensual agreement. MAG is confident it will achieve a win-win situation with all creditors involved and looks forward to executing its revised long-term business plan alongside its partners,” it said.
The group has been in talks with creditors for months as it struggles to survive in its current form. As previously reported, it claimed in November that the negotiations were in their final stages and that it was aiming for a deal with them in the first week of December.
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18.12.2020 - 21:12 UTC
Malaysia Airlines’ restructuring is expected to be completed by December 31, the country’s deputy finance minister, Abdul Rahim Bakri, divulged during a Ministers’ Question Time session at the parliament earlier this week, The Star newspaper reported.
The government has held several discussions on the debts and leasing costs the flag carrier faces, he explained, saying: “I can see some progress, and the matter is expected to be finalised by the end of the month.”
He said that around 75% of Malaysia Airlines’ aircraft are currently grounded due to ongoing travel restrictions. According to the ch-aviation fleets advanced module, 39 of Malaysia Airlines’ 99 aircraft are now active. But the financial position of Malaysia Aviation Group has been in distress since 2015.
That year, the group suffered a loss of MYR1.15 billion ringgit (USD285 million); MYR700 million (USD173 million) in 2016; MYR1.2 billion (USD297 million) in 2017; and MYR1.3 billion (USD322 million) in 2018, the deputy minister recounted.
As at August 31, 2020, Malaysia Aviation Group’s total liquidity stood at about MYR366 million (USD91...
