[KUALA LUMPUR] Malaysia Airlines said on Friday it has reached out to lessors, creditors and key suppliers as the company embarks on an urgent restructuring exercise.
Its statement comes in the wake of news that its parent company has told lessors the group is unlikely to be able to make payments owed after November unless it receives more funding from state fund Khazanah, according to a letter reviewed by Reuters.
The airline said it intended for the restructuring exercise to be completed over the next few months, but if that is not possible, the group "will have no choice but to take more drastic measures". Malaysia Airlines also said it is committed to ensure its restructuring exercise is duly implemented in a fair manner through any form of mechanism that is appropriate.
It added the negative financial impact from the Covid-19 crisis has been unprecedented, forcing the group "to take drastic steps in revising its business plan to ensure relevance and survival".