KUALA LUMPUR: TRANSMILE GROUP BHD [] received a respite on Thursday, April 14 after the scheme creditors agreed to its debt-restructuring schemes.
The beleaguered air cargo company said the scheme creditors had agreed to the proposed restructuring of the debts and a plan to seek new investors to pump in fresh funds to settle the long overdue repayments.
Transmile said the proposed Transmile Group and Transmile Air Services Sdn Bhd (TAS) scheme were approved by 'more than 50% in number of the respective scheme creditors representing more than 75% in value of the respective scheme creditors present and voting in person or by proxy at the respective meeting'.
In March, Transmile said while the proposed restructuring exercise was to address its debt obligations, it was not 'a proposed regularisation plan to regularise the group's financial condition for Transmile's continued listing on the Main Market of Bursa'.
To recap, Transmile's shares have been suspended from trading since last Thursday as it failed to submit a regularisation plan to the stock exchange.
The company said it had appealed to Bursa against the exchange's decision to delist its shares and it was seeking more time to work out a regularisation plan.
Under the latest proposed debt restructuring scheme, all the debts in its core unit TAS are to be transferred to a special purpose vehicle (SPV), which would be wholly owned by Transmile.
In addition, the proceeds of RM210.4 million from the disposal of MD-11F aircraft in January would also be injected into the SPV.
The divestment consideration would be retained in the SPV until the final outcome of a legal case concerning the medium-term notes (MTN) holders have the priority in repayment against the other financial lenders.
Transmile said upon completion of the debt restructuring, it would invite 'new potential investors to be identified'. The proceeds from new investors would be ultimately applied towards the settlements of the debts, it added.
The primary objective of the proposed restructuring scheme is to "ring-fence" the debts of TAS and to preserve the value of TAS as a going concern moving forward for the purpose of inviting new potential investor(s) seeing that TAS is the main operating subsidiary of Transmile.
Transmile's board had then said it was 'highly unlikely' that Transmile and TAS will be able to obtain any further extension of the restraining order when it expires on April 19 after the several extensions already granted by the High Court.
The beleaguered air cargo company said the scheme creditors had agreed to the proposed restructuring of the debts and a plan to seek new investors to pump in fresh funds to settle the long overdue repayments.
Transmile said the proposed Transmile Group and Transmile Air Services Sdn Bhd (TAS) scheme were approved by 'more than 50% in number of the respective scheme creditors representing more than 75% in value of the respective scheme creditors present and voting in person or by proxy at the respective meeting'.
In March, Transmile said while the proposed restructuring exercise was to address its debt obligations, it was not 'a proposed regularisation plan to regularise the group's financial condition for Transmile's continued listing on the Main Market of Bursa'.
To recap, Transmile's shares have been suspended from trading since last Thursday as it failed to submit a regularisation plan to the stock exchange.
The company said it had appealed to Bursa against the exchange's decision to delist its shares and it was seeking more time to work out a regularisation plan.
Under the latest proposed debt restructuring scheme, all the debts in its core unit TAS are to be transferred to a special purpose vehicle (SPV), which would be wholly owned by Transmile.
In addition, the proceeds of RM210.4 million from the disposal of MD-11F aircraft in January would also be injected into the SPV.
The divestment consideration would be retained in the SPV until the final outcome of a legal case concerning the medium-term notes (MTN) holders have the priority in repayment against the other financial lenders.
Transmile said upon completion of the debt restructuring, it would invite 'new potential investors to be identified'. The proceeds from new investors would be ultimately applied towards the settlements of the debts, it added.
The primary objective of the proposed restructuring scheme is to "ring-fence" the debts of TAS and to preserve the value of TAS as a going concern moving forward for the purpose of inviting new potential investor(s) seeing that TAS is the main operating subsidiary of Transmile.
Transmile's board had then said it was 'highly unlikely' that Transmile and TAS will be able to obtain any further extension of the restraining order when it expires on April 19 after the several extensions already granted by the High Court.
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