KUALA LUMPUR: Malaysia Airlines’ mum or dad firm has sought monetary support from its sole shareholder, the nation’s sovereign wealth fund, as debt restructuring talks with collectors drag on, the corporate mentioned 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 mentioned in an e-mail to Reuters.
The group mentioned it stays in talks for a restructuring and that it was concentrating on a industrial settlement within the first week of December.
The airline may very well be in search of as a lot as $500 million, mentioned Malaysia’s Edge weekly, which first reported the information, citing unnamed sources.
Khazanah didn’t instantly reply to a Reuters request for remark.
Malaysia Airlines is in search of to restructure after the COVID-19 pandemic pressured it to slash operations.
The mum or dad firm had warned leasing firms that Khazanah would cease funding the group and drive it right into a winding down course of if restructuring talks with lessors have been unsuccessful, Reuters reported final month.
The provider restructured after two lethal crashes in 2014, with Khazanah pumping in 6 billion ringgit ($1.5 billion). This time the federal government has mentioned it won’t bail out the struggling firm.
Chief Executive Izham Ismail advised employees in a memo final month that the restructuring talks have been taking longer than deliberate.
($1 = 4.0900 ringgit)
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