Notice to creditors is for defunct Malaysian Airline System

23-Oct-2020 Intellasia | TheedgeMarkets | 6:02 AM Print This Post

A notice to creditors for submission of proof of debt or claim on Malaysian Airline System Bhd (MAS), which was published in a local newspaper, has been sighted making rounds on social media and is believed to be part of the continued process on the liquidation of the now-defunct company.

“Notice is hereby given that creditors of the company, whose debts or claims have not already been admitted, are required not later than 5pm on November 12, 2020 to prove their debts or claims and to establish any title they may have to priority by delivering by hand or sending by post to the liquidator at the address below,” read the newspaper notice dated today.

The liquidator stated is KPMG Deal Advisory Sdn Bhd, which is understood to have been appointed at the beginning of this year.

A similar notice in a newspaper had been published earlier in February appointing KPMG as the interim liquidator for MAS.

MAS was taken over by Malaysia Airlines Bhd on September 1, 2015 as part of the national airline’s recovery plan.

Malaysia Airlines is owned entirely by the government through sovereign wealth fund Khazanah Nasional Bhd.

In a statement today, Malaysia Airlines clarified that the notice to creditors for submission of proof of debt or claim that has been circulating on social media is one of the processes of liquidation undertaken by KPMG for the old entity MAS, as the appointed liquidator of the company since February.

“The matter is unrelated to Malaysia Airlines and is in no way part of its current restructuring exercise,” it added.

Industry sources said today’s advertisement posting is likely part and parcel of the whole liquidation process, which takes time as it involves many legal considerations.

A slow recovery process worsened by the global impact of the Covid-19 pandemic on the travel and airline sector, Malaysia Airlines is now appealing to creditors to take a significant haircut on debts owed as it is unable to meet its payment obligations.

The Edge weekly on October 5 reported that the airline has started negotiations with existing creditors to restructure legacy liabilities and commitments of around RM16 billion that have been with its holding company Malaysia Aviation Group Bhd for many years.

Reuters had also reported that the airline’s cash is expected to run out by November without a restructuring plan.


Category: Malaysia

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