Malaysia's Transmile faces possible delistment

Singapore
Source:
This story is sourced from Pro
See more Pro news »

Malaysia's stock exchange plans to suspend the shares of financially troubled freight carrier Transmile and could delist the company, after the airline failed to submit its financial regularisation plan to the country's financial authorities.

The airline's shares will be suspended from 3 March and delisted from 7 March if it does not submit an appeal on or before 2 March, says the stock exchange.

Transmile, which has been struggling to repay its debt since an accounting scandal broke out at the carrier in 2007, was supposed to have submitted its regularisation plan on or before 22 February.

However, the airline says it has not reached a consensus with its lenders for the finalisation of a debt restructuring proposal.

"Until the debt restructuring proposal is finalised, the company does not envisage that it would be able to attract any injection of fresh funds into the company or be involved in any acquisition of other viable assets / businesses," says the carrier.

The airline estimates that it owes creditors about 528.95 million ringgit ($172.5 million). In January, it said it would sell four Boeing MD-11 freighter aircraft to FedEx to help pay off its debt.

Any appeal filed by the airline after 2 March will not be considered, says the stock exchange. If an appeal is received on or before that date, the stock exchange will defer the delisting of Transmile shares, it adds.