By Chan Quan Min
National investment fund Khazanah Nasional on Friday said its five-year restructuring plan for Malaysia Airline is not only “on track” but also “on schedule” in the first of many quarterly reports to come.
Earlier this month, Malaysia Airlines shareholders agreed to a buyout proposal by Khazanah clearing the way for the 12-point restructuring plan lasting three to five years to proceed unimpeded.
The restructuring effort will inject as much as RM6 billion into the airline over three years in order to bring it back to profitability.
Later in the month Khazanah incorporated a new company that will take over the relevant assets, liabilities and operations of the beleaguered airline from mid-2015. The new company, Malaysia Airlines Bhd, will start on a clean slate.
Malaysian Airline System Bhd, under which the company has been operating under for 40 years will become a shell company.
On Thursday, parliament passed the Malaysian Airline System Bhd (Administration) Act, allowing for what the company says will be a “smooth transition” to the new company.
The Act gives vast protection to the company administrators to renegotiate or terminate supplier and employment contracts and protects the administrators from legal action.
Azman Mokhtar
“The restructuring of MAS is well on track, with several major milestones reached and several more expected in the next quarter, particularly by the end of the year,” Khazanah managing director Azman Mokhtar said in a statement.
“As the Government has emphasised, nothing short of a complete overhaul is required.
“Nonetheless, the restructuring effort is guided by the principles of fairness and transparency, and its success is contingent upon everyone involved playing their role and shouldering the responsibility that the nation expects of them,” he said.
A ‘restructuring management office’ with close to 50 personnel is in full operations at Malaysia Airlines led by chief restructuring officer Mohd Nadziruddin Mohd Basri, who was appointed on Oct 3.
Mohd Nadziruddin was the chief financial officer of Malaysia Airlines before assuming the role. He reports to the MAS board restructuring committee, which comprises three independent and two non-independent board members, and the MAS CEO. The board is chaired by Krishnan Tan Boon Seng and has had 22 sittings since its inception.
Malaysia Airlines shares will be delisted from Bursa Malaysia in a matter of days and made a wholly owned subsidiary of Khazanah.
A “global search” for the CEO for the new Malaysia Airlines is underway. According to Khazanah a decision will be made by the end of the year.
You must be logged in to post a comment.