MIAMI – Malaysia Airlines (MH) has sought financial aid from its only shareholder, as debt restructuring talks with creditors continue, Reuters reported on November 21.
According to the report, the airline consulted sovereign wealth fund Khazanah Nasional, its sole shareholder, for an aid, but MH “did not disclose to the weekly how much cash it was seeking,” but some sources said “it could be as much as $500m.”
The airline is looking towards restructuring its business since the pandemic severely affected its operations that were slashed as a result.
No government bail-out
Last month, MH’s parent company warned, per the report, “leasing companies that Khazanah would stop funding the group and force it into a winding down process if restructuring talks with lessors were unsuccessful.”
The airline restructured after two crashes in 2014, with Khazanah injecting 6bn ringgit ($1.47bn) into the carrier. But the Malaysian government said it would not bail MH out this time.
Malaysia Airlines CEO Izham Ismail said in a memo quoted by Reuters that “the restructuring talks were taking longer than planned,” as airline sources told that “the talks were in final stages and that it was targeting to reach commercial agreement in early December.”
Featured image: Malaysia Airlines Airbus A350 | Photo: © Malaysia Airlines