Transmile to dispose of MD-11 fleet

[Sandeep G 1]

Well it's a sad day, reports that Transmile will be looking at ways and avenues of disposing their MD11 fleet to assist in a loan repayment schedule are out.

 

Please photograph these majestic birds before they are out of the Malaysian scene... One could only have dreamt that things were run differently at transmile - for a moment we thought another national champion would be created...Talk about mismanagement... a shame really.

 

These MD-11Fs should be quite hot on the market..

 

here's the article:

 

Transmile’s US$9.6mil debt due by May 1

KUALA LUMPUR: Transmile Group Bhd said of the total principal amount outstanding under its syndicated term loan of US$67.1mil as at March 31, US$9.6mil is due on May 1, 2008.

 

Another US$28.8mil is due in 2009 and US$28.7mil due in 2010.

 

“Of the total amount outstanding under the medium-term notes programme of RM105mil as at March 31, 2008, RM30mil is due on Aug 29, 2008.

 

“Meanwhile, the balance of RM50mil is due in 2009 and RM25mil due in 2010,” said Transmile in a filing with Bursa Malaysia yesterday.

 

The company made the announcement in response to a Bursa query seeking full details of the loans' due dates and its repayment.

 

Transmile said as at April 25, all the holders of the 1% guaranteed convertible bonds had exercised their put option and it was required to repay US$65.6mil by May 17.

 

The company said it had sought the indulgence of the respective lenders for the deferment of its repayment obligations by 18 months from their respective due dates.

 

In the event the indulgence from the lenders was not obtained and Transmile not able to meet its payment obligations as mentioned, the company would be in default of the said borrowings.

 

“When the default is called upon, the total borrowings of Transmile group amounting to about RM530mil as at April 25, 2008 will be due and immediately payable,” it said.

 

Transmile said it was also looking at the opportunities available for the disposal of its MD11 planes to fund the repayment.

 

Meanwhile, in response to another query on a news report, the company said the statement in the article that its largest shareholder was planning to exit the company was not true.

 

“After due and diligent enquiries with all the directors, major shareholders and such persons reasonably familiar with that matter, we wish to advise that there is no truth to the statements in the article with regards to the shareholders,” Transmile said. – Bernama

Edited April 29, 2008 by Sandeep G

[Gavin Andrew David 6]

The MD11's have been sitting in Subang for sometime now .. Rather sad , compared to how active they were , just 12 months ago .

 

The Two MD-11F (ER)'s and MD-11F's are leased right ? or are they owned by Transmile ...

[Radzi 2]

I wonder what will happen to their pilots. Already joining other airlines perhaps?

[Raj 0]

I wonder what will happen to their pilots. Already joining other airlines perhaps?

 

Capt Radzi,

According to an insider, pilots were told a month in advance before they stopped flying to look for new jobs...

[kelvin L 1]

What a sad story...got overvalued by certain people and this is what happens...he leaves his mess to be cleared by others

[Sri Ramani K. 0]

some of their captains have joined AK

[Sandeep G 1]

It's not getting any better at Transmile - their fiscal crisis is worsening!!!!

 

Perhaps soon we'll start to see the disposal of assets including that hangar at SZB... wonder who would take it...

 

would make a great clubhouse for MalaysianWings.com kekeke

 

Transmile defaults on payment for US$65m bonds

 

 

PETALING JAYA: Transmile Group Bhd unit TGB (SPV) Ltd has defaulted in payment for its 1% Guaranteed Convertible Bonds due 2010 and issued by the company amounting to US$65.6mil.

 

In a statement, it told Bursa Malaysia the default arose because the current cash flow generated from the operation of Transmile group was not sufficient to repay the outstanding amount in view of the under-utilisation of its MD-11 aircraft.

 

Transmile said it was negotiating with the lenders to defer the outstanding repayment by 18 months from their respective due dates.

 

It had also sought indulgence from the lenders to waive the cross default event under the respective agreements, it said. At the same time, it was pursuing the disposal of its four MD-11 aircraft to raise cash to repay its outstanding borrowings, which were raised to purchase the said aircraft.

 

Transmile said the decision of the lenders in relation to the indulgence sought was still pending as at yesterday.

 

“In respect of the financial and legal implication, in the event the default is called upon by the holders of convertible bonds and the waiver on the cross default event is not granted by the lenders, the total borrowings of Transmile, amounting to approximately RM530mil, will become due and immediately payable,” the statement added.

[Chee Yong 0]

Ooo... Another 1 failure in business of the aviation industry....