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SINGAPORE, October 10 – A group of leasing companies has rejected a restructuring plan presented by Malaysia Airlines, bringing the airline closer to a showdown over its future.
Lessors claiming to represent 70 percent of the planes and engines rented from 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 (MAG), were available for comment.
The letter further raises the stakes after Reuters reported that the airline group had warned lessors that its Malaysian state shareholder would push the airline into liquidation if the restructuring talks were unsuccessful.
The airline is one of dozens hardest hit by the coronavirus crisis, which has hit demand for air travel. – Reuters
