Should MAS Went into Bankruptcy? (May 2014)
This is really a multi-billion ringgit question. Since MH370 flew to the great Indian ocean, the share price of MAS also went that deep down under. It has fallen to as low as RM0.15 on 19th May 2014, the lowest level in at least 10 years. It was the most actively traded penny stocks in Bursa Malaysia for past few days. What should be the best solution for MAS ? The plunge that day was due to reports saying that Prime Minister is exploring the possibility of letting MAS to file for bankruptcy. Would it be a wise move? Let's us look at a few more alternative ways to rescue MAS financially. MAS to raise capital via private debts, be it issuing new shares or bonds. Easy to issue, but who is going to subscribe for it? In order to make it attractive enough, the bond paper must be backed by government and offering above than average yield. Higher yield means higher financing cost for MAS. MAS to sold off its assets. After various rounds of turnaround plans, what assets still left other t