DEBT-RESTRUCTURING talks between Malaysia Airlines Bhd (MAB) and its lessors and creditors are still in progress, said Khazanah Nasional Bhd managing director Shahril Ridza Ridzuan.

“Discussions are still going on with hopes to conclude in the near future,” he told The Malaysian Insight.

Shahril, however, declined to comment further when asked if the sovereign wealth fund will inject fresh funds into the flag carrier.

MAB, in a separate email response to The Malaysian Insight, said discussions have entered the final stage.

“The company continues to make progress towards a consensual restructuring and discussions have entered the final stage with a target to reach commercial agreement before the year ends,” it said.

Reuters reported on October 10 that MAB’s restructuring plan had been rejected by a group of aircraft-leasing companies.

The companies supposedly representing 70% of the aircraft and engines leased to MAB said it will challenge the “inappropriate and fatally flawed” plan, according to a letter from a London law firm sighted by Reuters.

The airline previously said it is undertaking an “urgent” restructuring exercise that entails renegotiating with lessors, as it saw little sign of the Covid-19 pandemic abating.

MAB is looking at restructuring RM16 billion worth of legacy liabilities and commitments the national carrier and other business units under its parent company Malaysia Aviation Group Bhd (MAGB) have been saddled with.

Khazanah is MAGB’s sole shareholder.

The Malaysian Insight reported on October 12 the airline could find a new lease of life in a new outfit if creditors reject its restructuring plan. – December 17, 2020.