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SINGAPORE / PARIS (9 October): A group of leasing companies rejected a restructuring plan submitted by Malaysia Airlines, bringing the airline closer to a showdown over its future.
Lessors who claim to represent 70% of the planes and engines leased to the group have called the plan “inappropriate and fatally flawed” and vowed 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, were available for comment.
The card further increases the stakes after Reuters reported that the airline group had warned lessors that its Malaysian state shareholder would push the airline into liquidation if restructuring talks were unsuccessful.
The airline is one of dozens hardest hit by the coronavirus crisis, which has hit demand for air travel.
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