This comes as the troubled charter airline company faces the threat of being wound up by the High Court at the instance of a creditor, with bankruptcy proceedings also looming over its directors.
Last month, SAS CEO Ida Adora Ismail said the company was expecting a fresh injection of funds that would be used to settle all critical debts, by Dec 31 last year.
She said the deal was delayed by the end-of-year holidays but that talks are progressing steadily and the company hopes to be in a position to make all payments by end-February.
“We wish to reassure and reinforce that we have secured firm interest from an investor and parties are currently finalising deal terms.
“We are working on incorporating the existing business and pipelines as part of the turnaround plan to ensure the company takes in investors on a stronger foot, and grows exponentially in a sustainable manner,” Ida told FMT.
SAS has not been able to resume services following the lapse of its air service permit (ASP) on Feb 29 last year.
The Malaysian Aviation Commission did not renew the ASP as SAS had failed to pay EPF contributions and schedular tax deduction to the Inland Revenue Board (LHDN) on their employees’ behalf.
As a result, the Civil Aviation Authority of Malaysia suspended the company’s air operator’s certificate, which subsequently lapsed.
Ida declined to comment on the legal proceedings faced by the company, saying they were best left to be resolved through court processes.
“Our assurance is that SAS is adhering fully to all due legal processes and going above and beyond in our efforts to turn the company around and tackle the headwinds,” she said.
The winding-up petition, filed by creditor Global Turbine Asia Sdn Bhd on Nov 7 last year, is scheduled to be heard by the Kuala Lumpur High Court on Jan 23.
When contacted, GTA’s solicitors, Teoh & Co, told FMT they expect the case to go ahead as SAS has yet to resolve the issue.
Hangar’s utility supplies cut
Meanwhile, a group of former employees said they were losing confidence in the prospect of receiving salary payments owed to them.
A spokesperson for the group also told FMT that until now, the supply of power and water to the company’s hangar remains disconnected due to non-payment of utility charges.
This, the spokesperson said, may affect the storage of aviation spare parts which must be kept below a certain temperature.
“Without air conditioning, the spare parts can become damaged,” the spokesperson added.
The spokesperson also said that both EPF and LHDN had confirmed that the company has yet to resolve its outstanding dues.