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“Based on the current run-rate, absent further funding from shareholders, the group will likely be unable to meet its obligations, including payments to lessors, post November 2020,” it said.
The letter was sent to lessors last month but the exact date was not immediately clear.
Khazanah, the country’s sovereign wealth fund, said it was supportive of the airline’s restructuring efforts but if they prove unsuccessful, it will need to evaluate options on how to maintain connectivity for Malaysia.
It did not provide clarity on whether it would provide additional funding beyond November.
Malaysia’s national airline has struggled to recover from two tragedies in 2014 – the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.
Khazanah took it private that year as part of a $1.5 billion restructuring but efforts to turnaround its business have been further upended by the coronavirus pandemic.
Malaysia Airlines, which has been beset by high costs, a bloated workforce and a messy strategy, said in its statement that its current plan was “highly dependent on the individual contributions of all relevant stakeholders in supporting the group.”
“It is intended that this restructuring exercise be completed over the next few months. However, if such an outcome is not possible, the group will have no choice but to take more drastic measures,” it said.
Sources said Malaysia Airlines plans to negotiate the steep discounts with its lessors via a restructuring plan it is seeking to implement through a UK court process.