"In the event Plan A fails, shareholder (Khazanah) will cease funding for MAG and will trigger winding down/liquidation process for MAG," according to the document, the contents of which were confirmed by six people familiar with the matter. Khazanah, MAG's sole shareholder, declined to comment.
SINGAPORE: The parent of Malaysia Airlines has warned leasing companies that state fund Khazanah will stop funding the group and force it into a winding down process if restructuring talks with lessors are unsuccessful, according to a letter seen by Reuters.
The warning from Malaysia Aviation Group (MAG), the holding company for the state carrier, raises the stakes in negotiations for a financial shake-up known as "Plan A" and sets out an alternative plan to divert funds to a sister airline unit called Firefly.
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