Transmile Q3 net loss climbs to RM135m

Transmile Q3 net loss climbs to RM135m
Published: 2010/11/16


Transmile Group Bhd (7000) reported an almost ninefold jump in third quarter net loss mainly due to the lower value of its aircraft.


The financially-troubled air-cargo company posted a net loss of RM135.1 million for the quarter to September 30 2010, up from RM15 million a year ago.

Transmile did not directly comment on its loss but said it made a smaller adjusted loss before tax and exceptional items of RM8.45 million as against RM20.4 million in the same quarter in 2009.

Revenue for the quarter was also two thirds higher at RM50.7 million.

The impairment loss on Transmile's MD-11 aircraft is RM143.8 million.
"The group is committed to dispose of its idle wide body aircraft to settle its loan obligations. Efforts to sell the aircraft are on going and accordingly, the aircraft are presented as held for sale," Transmile said in a statement to Bursa Malaysia.

The planes are now valued at RM242.1 million on its books.

The impairment loss reflects "the fair value less cost to sell based on the latest indicative offers received by the company for the wide body aircraft".

The company now owes more than RM500 million to creditors in the form of convertible bonds and medium-term notes (MTN), which it is unable to repay after freight traffic crashed in late 2008 to early 2009.

The MTN holders are owed RM105 million, with the EPF holding around half of those notes. Other MTN holders are Meridian Asset Management, OSK Group, Agrobank and AmBank Group, according to previous reports.

Transmile had fallen into the financially-troubled category of Practice Note 17 earlier this year. It has made little progress in restructuring its debt as it has failed to find buyers for its MD-11 aircraft.




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