MAS seeks time extension for capital restructuring, rights issue

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Malaysia Airlines is seeking for more time to brief its shareholders about its planned capital restructuring and rights issue.

The airline has made an application to Bursa Malaysia for an extension until 14 February to issue a circular explaining the proposals, ahead of an extraordinary general meeting to be convened in early March to approve the plan.

MAS announced the capital restructuring proposal in November 2012 which, if approved, would result in the carrier reducing the par value of its shares from M$1.00 ($0.329) to M$0.10. That would help to reduce the accumulated losses at the airline, which amounted to M$7.08 billion at the end of 2011.

The associated rights issue would be used to increase its working capital, fund pre-delivery payments on Boeing 737-800s and Airbus A330-300s that MAS has on order, and reduce some of its debt.

In its original filing, MAS said that it expected to complete the two transactions by the end of the second quarter of 2013. It has not advised if the extension will delay that timeline.