MALAYSIA Aviation Group Bhd (MAG), parent of Malaysia Airlines Bhd (MAB), recently set a new benchmark for airlines undergoing debt restructuring after completing its own exercise in record time, says Captain Izham Ismail, group CEO of both companies. The restructuring saw MAG’s creditors being split into seven classes, including aircraft operating lessors, aircraft finance lessors, spare engine lessors and maintenance service providers. However, MAB took only 44 of the aircraft operating lessors to the UK court to approve a scheme of arrangement. The aircraft operating lessors, on the other hand, gave us an average 40% haircut on aircraft rentals. “Our restructuring is now a benchmark for lessors when they talk to other airlines.

Source: The Edge Markets May 20, 2021 07:07 UTC