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.

It warned lessors in October that its owner, the state fund Khazanah Nasional, would stop funding the group and wind it down if discussions to rework outstanding payments to them remained fruitless. In the meantime, Malaysia continues to search for a strategic partner for its flag carrier.

Malaysia Aviation Group mentioned in its statement that it was exploring the use of a British scheme in its efforts to wrap up the restructuring, pending confirmation from the remaining minority creditors.