KUALA LUMPUR (Reuters) – Malaysia Aviation Group (MAG), the parent company of the national carrier Malaysia Airlines, is nearing the end of a restructuring exercise it hopes to complete in the first quarter of this year, it said in reported Thursday.
The airline said it was reviewing the UK Conciliation Scheme for the restructuring exercise, pending confirmation from the remaining small creditors.
MAG, which has been in talks with creditors for months, warned rental companies in October that state funds and sole shareholder Khazanah Nasional would stop funding the group and put the implement it into a flexible process if restructuring negotiations with tenants come through.
Sources had told Reuters that the agency is negotiating discounts with tenants through a restructuring plan they are trying to implement through a UK court process.
“Good progress has been made with the full support of a majority of creditors for consensus agreement,” said MAG.
The group said it is confident of a win-win situation with all creditors and looks forward to implementing its revised long-term business plan.
After the government said it would not provide financial relief or debt pledges, MAG sought financial support from Khazanah in November, who said any funding will depend on the outcome of MAG’s negotiations with creditors and tenants.
Reciting with Liz Lee; Edited by Shailesh Kuber