Malaysia Airlines close to completing debt restructuring exercise

Photographer: Sanjit Das/Bloomberg

The parent company of Malaysia Airlines said on Thursday it was nearing the end of a debt restructuring process which it hopes will be completed by the end of the first quarter of this year.

Malaysia Aviation Group (MAG) said it was in talks with around 40 creditors and lessors to take a haircut in its 16-billion-ringgit ($3.99 billion) debt restructuring plan, adding it was confident it could achieve a “win-win” result for all.

MAG has been in discussions with creditors for months as part of efforts to turn around Malaysia‘s national carrier, long beset by high costs and a bloated workforce.

The group warned leasing companies in October that state fund Khazanah Nasional, its sole shareholder, would stop funding the group and force it into a winding down process if restructuring talks with lessors fell through, Reuters reported previously.

“Good progress has been achieved with full support by a large majority of its creditors for a consensual agreement,” MAG said in a statement about the restructuring process.

Malaysia has been looking for a strategic partner for its national carrier. Khazanah took it private as part of broader restructuring in 2014, but efforts to turn around the business have been further upended more recently by COVID-19.

MAG said in the statement it was considering using a British scheme to carry out the restructuring, pending confirmation from some minority creditors.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.