A BRITISH court has given Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd, leave to convene a meeting with creditors over a proposed scheme of arrangement with the group’s aircraft leasing unit, MAB Leasing Ltd (MABL).

The meeting is a major component of MAG’s comprehensive restructuring, the group said in a statement yesterday.

“We will continue working with our relevant stakeholders with a view of completing the numerous transactions as soon as possible”.

On December 23, MABL issued a practice statement letter to certain groups of its creditors notifying them of its intention to file a scheme of arrangement under Part 26 of the UK Companies Act 2006.

The convening hearing was held yesterday.

The outcome of the meeting will be reported back to the court on February 22.

MAG said it expected the court process and wider group restructuring exercise to conclude by the end of the year’s first-quarter.

The group said the restructuring is based on a revised long-term business plan for sustainability that is backed by shareholders and a majority of creditors.

It said it was on track on a turnaround programme in early 2020 when it was derailed by the coronavirus crisis. With international borders staying closed, MAG said a full recovery in 2023 is not expected. – January 21, 2021.