Investment company Naluri, parent company of Malaysia Airlines (MAS) parent is preparing to sell part of its 29% shareholding in the airline as part of a proposed debt restructuring. Dutch carrier KLM, its bilateral partner, is seen as a possible buyer as it continues to work to bring MAS into its "Wings" alliance.
The sale plan was revealed by the chairman of Malaysia's Corporate Debt Restructuring Committee (CDRC),C Rajandram, who says Naluri will "still remain as the dominant stakeholder" after it sold part of its stake.
Rajandram says the restructuring - to include new debt repayment schedules with creditors - would help raise enough cash to cover Naluri's debts, which reportedly total more than 1.2 billion ringgit ($316 million).
Rajandram's comments have helped revive market rumours that KLM will buy a stake in MAS, but it denies that talks are being held. MAS is considering joining a multilateral alliance and the emerging grouping of KLM, Northwest Airlines and Alitalia is considered the most likely choice.
Naluri last year appointed Chase Manhattan to assist with its debt restructuring, to be carried out through the CDRC. The body was established in 1998 to help local companies survive the regional economic downturn and works under the auspices of state-owned Bank Negara Malaysia.
It liaises with credit committees to resolve differences between companies and their creditors, to help make corporate debt restructuring decisions and prevent companies from seeking court protection from creditors too quickly.
Source: Airline Business
