Malaysia Airlines seeks aid from sovereign wealth fund Khazanah

The Khazanah Nasional Berhad logo is displayed on a laptop. Photo: Ipsita Ray/DEALSTREETASIA

 Malaysia Airlines‘ parent company has sought financial aid from its sole shareholder, the nation’s sovereign wealth fund, as debt restructuring talks with creditors drag on, the company said on Saturday.

Malaysia Aviation Group has requested financial support from our shareholder Khazanah Nasional although the company isn’t in a position to comment on amount at this point in time,” it said in an email to Reuters.

The group said it remains in talks for a restructuring and that it was targeting a commercial agreement in the first week of December.

The airline could be seeking as much as $500 million, said Malaysia‘s Edge weekly, which first reported the news, citing unnamed sources.

Khazanah said any funding for the airline will depend on the outcome of discussions with creditors and lessors, which it said is crucial to the success of the restructuring.

Malaysia Airlines is seeking to restructure after the COVID-19 pandemic forced it to slash operations.

The parent company had warned leasing companies that Khazanah would stop funding the group and force it into a winding down process if restructuring talks with lessors were unsuccessful, Reuters reported last month.

The carrier restructured after two deadly crashes in 2014, with Khazanah pumping in 6 billion ringgit ($1.5 billion). This time the government has said it will not bail out the struggling company.

Chief Executive Izham Ismail told staff in a memo last month that the restructuring talks were taking longer than planned.

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.