The outlook for the cash-strapped Transmile Group remains "foggy" as the air cargo company has yet to have a clear deadline on its debt-restructuring, selling of its fleet and turnaround target.

The company was dealt another blow when one of its creditors, Malaysian Trustees Bhd, filed a winding-up petition on March 26.

After two years since it was hit by accounting woes in May 2007, Transmile is still waiting for its advisors to formulate its debt-restructuring plan.

transmile air aircraft 250507 "It is still on-going. We've to wait for our advisors to formulate the plan and communicate with our lenders," said managing director Liu Tan Shin, when asked on the company's plan to restructure its debt.

Transmile's current debt obligations include a syndicated term loan of US$66.9 million, medium-term notes amounting to RM105 million and guaranteed convertible bonds of US$65.5 million.

All the loans are already in default over the past 30 months, he said after the company's annual general meeting today.

It was reported that the Employees Provident Fund (EPF), believe to be the main party to file the winding-up petition, is part of the RM105 million in medium-term notes issued by Transmile.

The company was given until April 16 to settle its debts with the Malaysian Trustees Board (MTB). However, Liu said there has been no further notice for the winding up from MTB though the deadline lapsed last week.

"We have been trying to do it (debt-restructuring) for two years. We will try and expedite that. We will release the documents to the bank and wait for them to come back. It involves about 20 banks both foreign and local," he said.

Bid to rescue ailing firm

Liu said the group was considering reaching a mutually-beneficial solution with its major lenders for the debt-restructuring exercise.

It may, however, go to its shareholders or the capital market to raise funds once it settles all issues including the resolution of debts.

On plans to turnaround the company, group executive director Robert J Hyslop said the group will continue to focus on the provision of customised air freight services in particular postal, air express and courier companies.

During the year, Transmile launched new flights to Labuan and Bintulu to serve the oil and gas industry in Sabah and Sarawak.

"More recently, we started services from Singapore to Labuan to transport unique equipment of the oil and gas industry," he said, adding that new routes such as to Balikpapan in Sarawak is being planned for the year.

However, the management was unable to give the exact timeframe as to when it aims to turnaround and be profitable.

"We will turn it around for you tomorrow," said Liu in jest.

- Bernama