( KUALA LUMPUR, 23rd Sept 2020 ) Malaysia Airlines, which has suffered continuous losses, and has been hit hard by the 2019 COVID-19 pandemic, has been forced to postpone the repayment of bonds that are about to expire.
CIMB International Investment Bank notified Bank Negara today that it had issued an extension notice to relevant Islamic bond holders on the 17th of this month.
"Holders of Islamic bonds will not receive payment during the following distribution periods, namely March 29, 2019 to September 30, 2019, September 30, 2019 to March 31, 2020, and March 31, 2020 Until September 30."
CIMB Investment Bank also stated that Malaysia Airlines’ sukuk, worth RM1.5 billion, will be delayed for six months.
Malaysia Airlines issued these debt repayments in 2016 to raise working capital and general investment purposes.
Khazanah was invested 6 billion ringgit in 2014 to privatize Malaysia Airlines and bail out Malaysia Airlines, but Malaysia Airlines is still at a loss in the past few years.
Loss Reduced By 2.5%
For the fiscal year ended December 31, 2018, Malaysia Airlines’ loss decreased by 2.5% to RM 79.71 million; its annual turnover increased by 0.8% to RM 8.74 billion.
Malaysia Airlines launched a long-term plan in July last year to achieve breakeven in 2022 and obtain sufficient revenue in 2024 to offset its operating costs.
However, the COVID-19 disease has put the global aviation industry into trouble, and Malaysia Airlines is not immune.
"The Edge" weekly reported that Malaysia Airlines has received US$300 million (approximately RM1.246 billion) in funding to deal with the impact of the epidemic; however, Malaysia Airlines responded in July that it has not yet received government funding.
**Info & Image are taken online
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