Khazanah Nasional Remains Heavily Exposed to Malaysia Airlines and its Future
Posted on 10/02/2020
Malaysia’s Khazanah Nasional Berhad is heavily exposed to the outcome of Malaysia Airlines, the country’s carrier. Malaysia Airlines, like other airlines, are struggling under the headwinds of COVID-19. The airlines had big troubles before the coronavirus outbreak. Malaysia Airlines has reached out to creditors, suppliers, and lessors, as the company seeks ways to restructure. Malaysia Airlines parent entity informed lessors that they may be unable to make payments owned after November 2020 unless the airlines receives additional funding from the Malaysian government.
Malaysia Airlines has warned the leasing companies that Khazanah will stop funding the airlines if discussions with the lessors are not successful. This could trigger a winding down or liquidation process for Malaysia Airlines.
