By Anshuman Daga SINGAPORE, Oct 2 (Reuters) - Malaysia Avia
By Anshuman Daga
SINGAPORE, Oct 2 (Reuters) – Malaysia Aviation Group, the holding firm for Malaysia Airways Bhd, mentioned in a letter to lessors the group is unlikely to have the ability to make funds owed after November except it receives extra funding from state fund Khazanah.
The letter, reviewed by Reuters, follows a request by the troubled service for steep reductions on plane leases from its lessors as a part of a broad restructuring plan, three sources with information of the matter mentioned.
In accordance with the letter, the aviation group was experiencing “a median month-to-month working money burn of $84 million” however solely had $88 million in liquidity as of Aug. 31 and a further $139 million obtainable from Khazanah, its sole shareholder.
“Primarily based on the present run-rate, absent additional funding from shareholders, the group will probably be unable to satisfy its obligations, together with funds to lessors, submit November 2020,” it mentioned.
The letter was despatched final month however the precise date was not instantly clear.
Malaysia Aviation Group and Khazanah had no quick remark in response to Reuters queries.
Malaysia’s nationwide airline has struggled to recuperate from two tragedies in 2014 – the mysterious disappearance of flight MH370 and the taking pictures down of flight MH17 over japanese Ukraine.
Khazanah took it non-public that yr as a part of a $1.5 billion restructuring however efforts to turnaround its enterprise have been additional upended by the coronavirus pandemic.
Malaysia Airways plans to barter the steep reductions with its lessors through a restructuring plan it’s searching for to implement by a UK courtroom course of, the sources mentioned, declining to be recognized because of the sensitivity of the matter.
Along with Malaysia Airways Bhd, the holding firm group contains different native carriers and entities concerned in plane leasing and floor dealing with providers.
(Reporting by Anshuman Daga in Singapore and Tim Hepher in Paris; Extra reporting by Liz Lee in Kuala Lumpur; Enhancing by Miyoung Kim and Edwina Gibbs)
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