Transmile still grappling with turnaround
Transmile Group MD Liu Tai Shin (right), and Group COO Robert Hyslop at the press conference today. — Picture by Choo Choy May
KUALA LUMPUR, April 29 — Cargo airline Transmile Group Bhd is working on resolving its debt woes and was given till April 16 to settle its debts with Malaysian Trustees Bhd (MTB), failing which the latter would seek a winding up petition.
Transmile Managing Director Liu Tai Shin said today that although the April 16 deadline had lapsed, the company had yet to receive a winding up notice from MTB.
“We’ve not received any further notice,” he told reporters after the company’s annual general meeting today.
Transmile’s debts amounting to RM532 million with some 20 local and foreign banks have been in default for 30 months and Liu said the company is working with advisors to restructure the debt.
Liu said that Transmile’s focus will be on resolving its debt issues.
“Our target is to get rid of all our debt problems,” he said.
He also said that the lawsuit filed against the former management that was announced on Tuesday was partly to help the company regain credibility.
“We have a bad reputation which we need to address,” he said. “It is not about getting money back. From the company’s perspective, we need a closure.”
Transmile came into the spotlight after an accounting scandal was exposed in mid-2007 which resulted in a steep drop in the company’s share price.
The company said on Tuesday that its board of directors is suing former chief executive officer Gan Boon Aun and former chief financial officer Lo Chok Ping for breaching their duties by grossly overstating the company’s revenue.
Liu declined to give a timeframe on when Transmile — which recorded a pre-tax loss of RM270.6 million in 2009 as compared with a loss of RM121.2 million in 2008 — is expected to be turned around.
He said that the company faced difficulty in disposing four planes worth an estimated RM386 million as potential customers faced troubles in obtaining financing.
“We have four planes on the tarmac that are not flying,” he said.
In terms of expansion plans, the company is branching out to the oil and gas sector, and started a Singapore to Labuan service which it hopes will help it return to profitability.
It also intends to open a new route to Balikpapan in Kalimantan.
In Transmile’s press statement, Liu said: “Despite major issues faced we are still doing business and developing new routes to strengthen the group’s presence in the region and generate revenue.”
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