Transmile in trouble
Filed Under (Business News) by Webmaster on 25-05-2010
Tagged Under : Transmile
The medium-term note (MTN) holders of Transmile Group Bhd, a troubled air cargo carrier, will continue with their move to wind up the company.
Sources said the five MTN holders, who are owed RM105mil, believe they have priority over the assets. They had on April 28 met to appoint receivers for the company.
The company’s other obligations included RM214mil in syndicated term loans and RM209mil in guaranteed convertible bonds.
The five MTN holders are believed to be the Employees Provident Fund (EPF), Meridian Asset Management Sdn Bhd, OSK Group, Agrobank and AmBank Group. The EPF is believed to hold around half of the notes.
A source familiar with the debt restructuring plan told StarBiz that the holders were pursuing this course because they believed management “is not serious or not willing” to negotiate in good faith to resolve the issue.
Transmile told Bursa Malaysia last Friday its legal advisers took the view that all creditors of Transmile Air Services Sdn Bhd, a wholly-owned unit of the company, ranked equally with no one lender having priority over the other.
The company said the main obstacle remained the MTN holders, who held that they had priority in ranking over all other creditors.
Transmile said this issue, once resolved, would facilitate the completion of the restructuring.
It remains confident of “reaching a mutually beneficial solution with its major lenders for its debt restructuring”.
