The parent company of Malaysia Airlines has said that it is nearing the end of a debt restructuring process that it hopes will be completed by the end of the first quarter of this year.
Malaysia Aviation Group (MAG) said that it is in talks with approximately 40 creditors and lessors to take a haircut in its 16-billion-ringgit ($3.99 billion) debt restructuring plan, adding that it is confident that it can achieve a "win-win" result for all.
MAG has been in discussions with creditors for months as part of efforts to turn around Malaysia's national carrier, which has been long beset by high costs and a bloated workforce.
The group warned leasing companies in October that state fund Khazanah Nasional, its sole shareholder, would stop funding the group and force it into a winding down process if restructuring talks with lessors fell through, Reuters reported previously.
"Good progress has been achieved with full support by a large majority of its creditors for a consensual agreement," MAG said in a statement about the restructuring process.
Malaysia has been looking for a strategic partner for its national carrier. Khazanah took it private as part of broader restructuring in 2014, but efforts to turn the business around have been further upended more recently by the COVID-19 pandemic.
Considering Using A British Scheme
MAG said in the statement that it is considering using a British scheme to carry out the restructuring, pending confirmation from some minority creditors.