Home Business Malaysia Airways seeks assist from wealth fund Khazanah, creditor talks proceed

Malaysia Airways seeks assist from wealth fund Khazanah, creditor talks proceed

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© Reuters. FILE PHOTO: An airport worker beside a Malaysia Airways aircraft at Kuala Lumpur Worldwide Airport

KUALA LUMPUR (Reuters) – Malaysia Airways’ guardian firm has sought monetary assist from its sole shareholder, the nation’s sovereign wealth fund, as debt restructuring talks with collectors drag on, the corporate stated on Saturday.

“Malaysia Aviation Group has requested monetary help from our shareholder Khazanah Nasional though the corporate is not able to touch upon quantity at this time limit,” it stated in an e mail to Reuters.

The group stated it stays in talks for a restructuring and that it was focusing on a industrial settlement within the first week of December.

The airline could possibly be in search of as a lot as $500 million, stated Malaysia’s Edge weekly, which first reported the information, citing unnamed sources.

Khazanah didn’t instantly reply to a Reuters request for remark.

Malaysia Airways is in search of to restructure after the COVID-19 pandemic pressured it to slash operations.

The guardian firm had warned leasing corporations 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 service restructured after two lethal crashes in 2014, with Khazanah pumping in 6 billion ringgit ($1.5 billion). This time the federal government has stated it won’t bail out the struggling firm.

Chief Government Izham Ismail instructed workers in a memo final month that the restructuring talks have been taking longer than deliberate.

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