KUALA LUMPUR: Malaysia Aviation Group (MAG), parent company of national carrier Malaysia Airlines, is nearing the end of a restructuring exercise which it hopes to complete in the first quarter this year, it said in a statement on Thursday.
The aviation group said it is exploring a U.K. Scheme of Arrangement for the restructuring exercise, pending confirmation from remaining small minority creditors.
MAG, which has been in discussions with creditors for months, warned leasing companies in October that state fund and sole shareholder Khazanah Nasional will stop funding the group and force it into a winding down process if restructuring talks with lessors fall through.
Sources had told Reuters that the group is negotiating discounts with lessors via a restructuring plan it is seeking to implement through a UK court process.
“Good progress has been achieved with full support by a large majority of its creditors for a consensual agreement,” MAG said.
The group said it is confident of a win-win situation with all creditors and looks forward to execute its revised long-term business plan.
After the government said it would not provide financial relief or debt guarantees, MAG sought financial aid from Khazanah in November, which said any funding will depend on the outcome of MAG’s discussions with creditors and lessors.
Source: Reuters, Reporting by Liz Lee; Editing by Shailesh Kuber