No government guarantee on loans to any airline


Nikkei Asia had earlier reported that the government had approved a RM1bil loan as a lifeline to AirAsia Group Bhd. The agency reported that the loan would be made by a group of local banks under a government scheme to help companies deal with the fallout from the Covid-19 pandemic.

KUALA LUMPUR: The Finance Ministry has not provided any financing nor guarantee to any airline, it has clarified, refuting media reports on the matter.

Nikkei Asia had earlier reported that the government had approved a RM1bil loan as a lifeline to AirAsia Group Bhd.

The agency reported that the loan would be made by a group of local banks under a government scheme to help companies deal with the fallout from the Covid-19 pandemic.

The question of funding has been touchy as the government had stated earlier that it would not bail out any airline.

Last Saturday, a group of leasing companies rejected a restructuring plan put forward by Malaysia Airlines (MAS), bringing the state carrier closer to a showdown over its future.

The lessors, claiming to represent 70% of the airplanes and engines leased to MAS, have called the plan “inappropriate and fatally flawed” and pledged to challenge it, according to a Reuters report.

AirAsia X Bhd is also in dire need of massive debt forgiveness from its creditors, or be prepared to shut its business down for good.

The low-cost, medium-haul airline, which has grounded all its flights due to the Covid-19 outbreak, is asking creditors and suppliers to forgo over RM63bil in liability and instead accept a maximum RM200mil in deferred payment.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

US trade deficit jumps to record high in June on strong import growth
AirAsia nets RM240mil from Fly Leasing-Carlyle Aviation merger
Pavilion REIT doubles net profit in Q2 to RM20.4mil
Indonesia exits recession with 7% GDP growth in Q2, but virus clouds recovery
Comfort Gloves facilities in Taiping placed under EMCO�
MR DIY posts robust Q2 results despite Covid-19 curbs�
FBM KLCI closes in positive territory
China stocks fall as Beijing's crackdown fears hit sentiment
Nintendo profit falls as Switch sales fade
AmInvest takes top spots at annual fund management awards

Stories You'll Enjoy


Vouchers