A group of leasing companies has rejected a restructuring plan put forward by Malaysia Airlines, bringing the carrier closer to a showdown over its future.
Lessors claiming to represent 70% of the airplanes and engines leased to the group have called the plan ‘inappropriate and fatally flawed’ and pledged to challenge it, according to people familiar with the matter and a letter from a London law firm seen by Reuters.
However, some leasing companies have endorsed the plan, one of the people said.
Neither the law firm nor the airline’s parent company, Malaysia Airlines Group (MAG), was available for comment.
The letter further raises the stakes after Reuters reported the airline group had warned lessors that its Malaysian state shareholder would push the carrier into liquidation if restructuring talks were unsuccessful.
The airline is one of dozens severely hit by the coronavirus crisis, which has battered demand for air travel. – Oct 10, 2020
