MALAYSIA: Troubled Transmile sells four MD-11Fs to FedEx

Troubled air cargo carrier Transmile Group Bhd has entered into a used aircraft sale and purchase agreement with FedEx Express to dispose of four MD-11F aircraft for RM208.8 million (US$68.4 million). Kenanga Investment Bank Bhd said in an announcement on behalf of Transmile’s board that the funds arising from the disposal would be used to […]


Troubled air cargo carrier Transmile Group Bhd has entered into a used aircraft sale and purchase agreement with FedEx Express to dispose of four MD-11F aircraft for RM208.8 million (US$68.4 million). Kenanga Investment Bank Bhd said in an announcement on behalf of Transmile’s board that the funds arising from the disposal would be used to partially settle the outstanding debt of the company, which amounted to RM528.9 million as at 30 September 2010. Transmile incurred a larger net loss of RM135.1 million for the quarter to 30 September 2010, from RM15 million a year earlier. “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,” it said. Transmile said it is still in negotiation with the lenders on debt restructuring and had yet to reach consensus for finalization of a restructuring proposal, which has a deadline of 23 February 2011.