Transmile sells four MD-11Fs to FedEx to pay debt

MALAYSIA's cargo airline Transmile is to sell four MD-11Fs in a MYR208.9 million (US$68 million) aircraft deal with FedEx, reports the Malaysia Star.

The funds are earmarked to settle outstanding debt obligations as of September 30, amounting to MYR528.9 million, said Kenanga Investment Bank on the air carrier's behalf.

"The proposed disposal is expected to expedite the debt restructuring as a significant portion of the outstanding debt obligations would have been resolved upon completion of the proposed disposal," said bank in a statement.

The airline reported net loss of MYR135.1 million in the third quarter of 2010, down from a net profit of MYR15 million in the same quarter last year when it failed to find buyers for its wide-body aircraft.

It is unlikely to meet its February 23 deadline of a regularisation plan although negotiations on debt restructuring by lenders is still some way off finalisation said the bank.

In a filing to the Bursa Malaysia it said that the idling of the wide-body freighters was costing up to MYR1.18 million a year in parking, storage and maintenance costs, reports the Bernama news agency.
(Source:www.schednet.com)