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Malaysia Airlines' Aircraft Lessors To Vote On Restructuring Scheme On February 10

Published on Feb 9 2021 2:16 PM in General Industry tagged: Malaysia Airlines

Malaysia Airlines' Aircraft Lessors To Vote On Restructuring Scheme On February 10

Malaysia Airlines' aircraft operating lessors will vote on the airline's restructuring scheme on Wednesday February 10, the parent company of the national carrier has said.

The lessors are among 40 creditors to which the airline owes 16 billion ringgit ($3.9 billion).

To push ahead with its restructuring - a major step for the company, long beset by high costs and a bloated workforce and further upended by COVID-19 - Malaysia Airlines needs approval from aircraft operating lessors holding at least 75% of the money owed.

Malaysian Aviation Group (MAG), confirming the date of the meeting first reported by The Edge Weekly, said that creditors have been divided into seven classes and that it is only taking aircraft operating lessors to the British court that is adjudicating its restructuring plans.

Last month, MAG said that it had obtained the court's approval to proceed with the meeting, the outcome of which will be reported to the court at a hearing on February 22.

The airline hopes to reach bilateral agreements with other classes of creditors such as aircraft finance lessors and plane makers such as Boeing and Airbus before the court proceedings conclude.

Expecting Conclusion By End Of March

MAG previously said that it expects the court process and restructuring to conclude by the end of March.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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