Malaysia explores debt measures, M&A to bail out airlines

Malaysia is exploring the possibility of bailing out domestic airlines that have been hit hard by the coronavirus outbreak, according to people with knowledge of the matter. Officials have been studying ideas including setting up a vehicle to take over the debt of companies like Malaysia Airlines and AirAsia Group, the people said. The govt is also considering encouraging mergers between some of the carriers, said the people. They have been discussing whether to provide financial support to other parts of the economy affected by the pandemic such as the tourism, real estate and oil and gas industries, the people said. Malaysia Airlines has separately been in talks with lenders about modifying its borrowings, the people said. <br/>