Transmile gets nod for debt revamp plan

[Zamir 0]

PETALING JAYA: Financially-distressed air cargo operator Transmile Group Bhd has received the green light from creditors for its debt restructuring schemes.

 

In a filing with Bursa Malaysia yesterday, Kenanga Investment Bank Bhd, on behalf of the company, said both the proposed Transmile Group and Transmile Air Services Sdn Bhd (TAS) schemes had been approved by more than 50% of the respective schemes’ creditors.

 

“This represents more than 75% in value of the respective schemes’ creditors present and voting in person or by proxy at the respective meetings,” it said.

 

Under the latest proposed debt-restructuring schemes, all the debts in its core unit TAS that stood at RM680.3mil as at end of last year were to be transferred to a special-purpose vehicle (SPV), which would be wholly owned by Transmile Group.

 

The SPV will also house some the proceeds from the proposed sale of MD-11F aircraft of US$68mil.

 

The scheme would also see a waiver of some RM60.3mil debt owed by TAS to two other Transmile Group subsidiaries.

 

Following the completion of the debt restructuring plan, Transmile Group will make the effort to invite new potential investors to the group.

 

The trading of Transmile Group securities have been suspended since last Thursday due to its failure to submit a regularisation plan to Bursa.

[Syukri 0]

Transmile has been very quiet lately, I supposed the new potential investor never show up...

[Amirul Mazlan 0]

Crews are leaving too. Many to AirAsia X.

[Syukri 0]

So I heard.. I believe one of M'wingers also follow that path..

[Lock SH 0]

Transmile has been very quiet lately, I supposed the new potential investor never show up...

 

 

Too much dirty laundry need to be cleaned I guess ........ Nice set up, good route structures, many landing rights but it is 'neither here nor there' .....

 

 

[khairuddin abu hanifah 0]

Never heard any news from Transmile so far. Anybody knows what's is going on with Transmile right now?

This is the latest info that I got.

 

OUTCOME OF 16th ANNUAL GENERAL MEETING, 24 May 2012

All resolutions set out in the Notice of AGM dated 2 May 2012 were duly passed by shareholders at the 16th AGM of the Company (Transmile) held on Thursday 24 May 2012.

REVIEW OF TRANSMILE'S MILESTONES OVER LAST FIVE YEARS
Shareholders were given a review of the efforts by the current Management over the last five (5) years to resolve the outstanding debt and operational issues despite the unrelenting legal challenges from certain lenders.

The following major milestones in each of the following specific areas culminating in the Court's sanctioning of the Scheme of Arrangement (SOA) on 20 February 2012 were elaborated on and duly noted by shareholders:-

Debt Restructuring & Related Legal Challenges
• Bursa Malaysia’s classification of Transmile as a PN1 and PN17 company and Transmile’s appeals to maintain its listing status and subsequent delisting in May 2011;
• Negotiations and preparation of a Common Terms Agreement which was subsequently found not workable due to business and regulatory issues and substituted with an alternative proposal but was not acceptable to lenders;
• Meeting with the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia to explore CDRC's assistance in the debt restructuring;
• Winding-up petition and civil suit for breach of Trust Deed by certain lenders;
• Approval of Scheme of Arrangement (SOA) of Transmile and its subsidiary, Transmile Air Services Sdn Bhd (TAS) , by a majority of scheme lenders at the respective Court Convened Meetings held in April 2011;
• Invitations to potential investors to submit proposal for acquisition of TAS in accordance with the SOA;
Legal Action Against Former Management
• Transmile’s internal investigation on financial irregularities and independent review by PriceWaterhouseCoopers;
• Civil suit by Transmile against its former management;
Operational Matters
• Preparation and sale of entire fleet of four (4) MD-11 aircraft in March 2011;
• Termination and expiry of business contracts and development of new routes and customers;
• Re-location of Subang air cargo operations to KLIA required by the Ministry of Transport and application for an extension of time and efforts to secure a new site at KLIA;
• Proposed disposal of Maintenance Repair and Overhaul (MRO) facility and tie-up with other major airline and cargo operator;

OPTIONS AND IMPLICATIONS OF SOA
The Chairman explained to shareholders that TAS has to repay the monies it had borrowed from lenders. The easiest solution would be to wind-up Transmile which would be drastic and to the detriment of all stakeholders as compared to the SOA which provides for:-
• TAS to be disposed of as a going concern to a potential investor and all proceeds together with the MD-11 sales proceeds would be transferred to the lenders;
• However, in the event the proposed TAS disposal cannot be achieved within nine (9) months from 20 February 2012 or such extended period, TAS would be placed under voluntary liquidation.

Shareholders were further advised that whether an investor is found for TAS or it is liquidated, the overall effect is that shareholders would lose all their investment as the loans far exceed the value of the Group’s assets. In view of the legal challenges which had unduly delayed sanctioning of the SOA, the Company may also be forced to opt for liquidation if it cannot find an investor soon for TAS due to depleting cash for the Company’s operations.

SHAREHOLDERS' RESPONSE
The shareholders present unanimously expressed:-
• their support for the current Board of Directors comprising a majority of senior management staff to implement the SOA as sanctioned by the High Court and to take whatever steps necessary to ensure Transmile’s viability and continued existence in the best interest of all stakeholders;
• that they are not blaming the current Board for the losses they have incurred and the parties responsible for the financial irregularities should be quickly brought to justice;
• that the current Board and Management including pilots, engineers and other staff and employees who have stayed in their jobs despite the difficult conditions are to be commended for their commitment and loyalty in keeping the Company going;

RE-ELECTION OF DIRECTORS
All four (4) Directors retiring at the 16th AGM comprising Encik Mohd Lutfi bin Mat Lazim, Mr Krishnasamy A/L Rengasamy, Ms Kam Wai Peng and Mr Tan Teong Boon were unanimously re-elected and the composition of the Board of Directors is as follows:-
Board of Directors as at 24 May 2012
1. Mr Liu Tai Shin (Chairman/Managing Director)
2. Encik Mohd Lutfi bin Mat Lazim (Nominee Director of Pos Malaysia Berhad)
3. Mr Krishnasamy A/L Rengasamy (General Manager, Flight Operations)
4. Ms Kam Wai Peng (Chief Financial Officer)
5. Mr Tan Teong Boon. (Head, Corporate Affairs)

 

And plus this one from The Star.

 

NEW INVESTORS FOR TRANSMILE?

By EDY SARIF
edy@thestar.com.my

Saturday May 28, 2011

 

SHAH ALAM: Recently-delisted Transmile Group Bhd is still fighting for its lifeline as its appointed investment banker seeks new investors to keep the company afloat.

 

Transmile, which was officially removed from the stock exchange on Tuesday, has given Kenanga Investment Bank Bhd the mandate to deal with potential investors looking to participate in the air-cargo operator's business.

 

“A number of investors have approached us and we are giving Kenanga the mandate to deal with them. However, we can't reveal much,” Transmile managing director Liu Tai Shin said after the company's shareholders meeting yesterday.

 

Liu said interested parties would need to have the financial muscle to invest in the company and to finance its operations and its re-location, should the company moved out from its current office in Subang Airport.

 

Transmile chief financial officer Kam Wai Peng (left) and Liu Tai Shin at the shareholders meeting.

 

Asked if the existing Transmile management would consider a buyout, Liu said: “They loved the idea but did not have the money for such a plan.”

 

He also said the company's restructuring plan was currently stalled as a result of lawsuits and legal actions by its lenders.

Transmile, which provides courier services between Peninsular and east Malaysia for Pos Malaysia Bhd, became a troubled air cargo operator after an accounting scandal in mid-2007. A new management led by Liu was then put in place to turn the company around.

The current management has had to grapple with settling large outstanding debts and fighting off its delisting. But it could not fight off the delisting, as the company was unable to submit its regularisation plan on time.

 

Its creditors had pursued the winding-up of Transmile's unit, Transmile Air Services Sdn Bhd.

Creditors had sought the action on the basis that Transmile was not able to turn itself around in the initial period given to it. Creditors were also worried that the little cash reserves the company had were depleting.

 

Transmile's debt obligations include medium-term notes (MTN) of RM105mil, a syndicated term loan of US$66.9mil (RM205mil) and guaranteed convertible bonds of US$65.6mil (RM201mil), which it was unable to repay after freight traffic crashed in late 2008 resulting in a sharp fall in freight rates.

 

The MTN holders include Meridian Asset Management, OSK Group, Agrobank and AmBank Group and the Employees' Provident Fund, which holds about half of the RM105mil.

 

Transmile did come into cash earlier this year, from the sale of its four MD-11F aircraft for RM208.8mil to Federal Express Corp. Proceeds from the disposal was to be used to partially settle the company's outstanding debt, which amounted to RM528.9mil as at Sept 30, 2010.

 

Transmile now has three Boeing 737 and nine Boeing 727 aircraft under its stable. Its chief operating officer Robert John said the group was currently getting revenue from three business streams chartering aircraft, leasing equipment to airlines and scheduling air cargo (selling cargo capacity through agents and freight forwarders).

 

Although the company has been delisted, Liu said its business was running as usual.

“Business is as usual and our operations have nothing to do with the delisting as we still have jobs to do.

“Our shareholders are still holding shares in the company, only now the shares are not traded anymore,” he said, adding that about 67% of the company's shares were held by minority shareholders.

[Lock SH 0]

Cargo business is not doing well since 2008 until today. Even cartels like KE, SQ, EK, CI and CX are struggling to get their cargo business going. However, they are lucky to have pax business with belly spaces to generate revenues and contracted express cargo to get premium charges. This is not the case with TAS. A fleet of jurassic aeroplane (read : high direct operating cost), competing with Neptune Air, Gading Sari and RM1/kg cargo charges from Air Asia in our own turf certainly does not help at all.

 

I sincerely hope that this company will stay afloat and continue to survive despite having troubles to attract new investors. The question is, FOR HOW LONG?

 

 

[khairuddin abu hanifah 0]

Does that mean their AOC still valid to enable them to fly?

[Lock SH 0]

The AOC has got nothing to do with company's financial status. It will remain valid as long as it fullfils DCA's requirement.

 

 

[Syukri 0]

They will held an EGM on this 27th.

PROPOSED DISPOSAL OF 266,700,000 ORDINARY SHARES OF RM1.00 EACH REPRESENTING THE ENTIRE ISSUED AND PAID-UP CAPITAL OF TRANSMILE AIR SERVICES SDN BHD PURSUANT TO THE SCHEMES OF ARRANGEMENT OF TRANSMILE GROUP BERHAD AND TRANSMILE AIR SERVICES SDN BHD BOTH DATED 14 APRIL 2011 FOR A TOTAL CASH CONSIDERATION OF NOT LESS THAN RM40.0 MILLION (“PROPOSED TAS DISPOSAL”)

http://www.transmile.com/index.asp?id=224&im=news_d

Been reading it couple of times, still cant make tha tails or head of it. But the term 'disposal of 267K of shares' doesnt look good to me..

[Syukri 0]

So now Transmile Air Service is own by Amrul Nizar Anuar Resources (ANAR) for 40 million ringgit.. But the drama continues......

KUALA LUMPUR: An investment holding company and its three directors are suing seven individuals, including a former KFC deputy executive chairman, over a dispute in the terms of sale of shares.

High Court judge Justice Has Zanah Mehat (rpt correct) set next Thursday to hear merits with regard to various injunction applications by the parties.

In the suit filed on Aug 1, Amrul Nizar Anuar Resources Sdn Bhd (ANAR) and its directors said it entered into an agreement dated March 8 with Transmile Group Bhd (TGB) to take over Transmile Air Services Sdn Bhd (TAS) through purchase of its shares for RM40mil.

http://www.thestar.com.my/News/Nation/2013/08/20/anas-sue-over-terms-of-sale-of-shares.aspx

[Arthur Van Straten 0]

I am at a loss here.

 

Is it really so that someone indeed had a cunning plan to buy Transmile, which has collossal debts?

And than did find willing partners to go out of pocket for RM 40 million ?

The mind boggles.

My first reaction was , when i read that article, someone has won the lottery and has no idea what to do with the money.

But, then i read it again and again, and than it struck me. I was wrong. Way off the mark.

Because, the article said, and i quote : "They said that discussions with Ishak was made in the presence of company director and shareholder Aizul Rohan Anuar and his brother Amrul Nizar Anuar who has experience in aviation industry. (the underlining is by me).

 

You see, i had to eat humble pie, got my hat and umbrella and left the building silently, because i have no idea what i am talking about.

Luckely there are still wise entrepeneurs in Malaysia who will show us the way forward in putting Malaysia on the world aviation map.

 

Cheers

Art

(hat, umbrella, and sneaking out)