This financial restructuring exercise, which is expected to complete in early March, involves all of MAG’s key stakeholders and, in addition to the scheme, will see the airline successfully achieve bilateral agreements with finance lessors, spare engine lessors, maintenance service providers, corporate lenders and government-related entities.Now that the scheme has been formally sanctioned by the UK court, the airline can proceed to implement its restructuring plan with the support of Khazanah and existing stakeholders.Key elements of the restructuring so far include network cuts, structural cost savings, cash conservation and payment deferral initiatives, which translated to RM5.5 billion in savings in 2020. It is aiming for another RM397 million in savings for the first quarter of 2021.

MAG said the UK High Court has sanctioned a scheme of arrangement under Part 26 of the UK Companies Act 2006 between MAG’s leasing entity MAB Leasing Ltd and the majority of MAG’s aircraft operating lessors today.The scheme received the unanimous support of the relevant lessors and represents an important component of MAG’s wider restructuring exercise, which will achieve a reduction in MAG’s liabilities of over RM15 billion.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz was quoted as saying that a total of RM28 billion had been injected into Malaysia Airlines by Khazanah to date.The latest commitment follows Malaysia Airlines’ RM16 billion debt restructuring plan that was given the green light by the UK High Court today, with the deal set to complete by early next month.

Khazanah Nasional Bhd the sole shareholder of Malaysia Airlines Bhd, has committed to inject RM3.6 billion in new capital into the national carrier's holding company Malaysia Aviation Group Bhd (MAG), to fund the group's business until 2025.