FedEx purchases four aircraft from struggling Transmile
Malaysian-based cargo carrier Transmile Group has agreed to sell four MD-11F aircraft to FedEx in order to reduce growing debt. The freighter aircrafts, which have been idle since 2008, will cost FedEx $68m (RM208.8m).
In an announcement by the Kenanga Investment Bank on behalf of the Malaysian company, it was confirmed that the money recouped from the sale will be used to partially settle Transmile’s debts, which in total have spiraled to $172.8m (RM528.9m).
“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.
According to Malaysian media, Transmile incurred a net loss of $44.1m (RM135.1m) for the financial quarter ending 30 September.
Transmile confirmed that the four aircrafts have been idle since April 2008, because the company was unable to verify any viable routes to service since that time.
