Malaysia Aviation Group, the holding company for Malaysia Airlines, is running out of cash.
In a letter to lessors, reviewed by Reuters, it said it's unlikely to be able to make payments after November.
That's unless it receives more funding from state fund Khazanah.
Sources say the letter follows a request by the troubled carrier for steep discounts on aircraft rentals.
It also said that in the absence of an implemented restructuring by the end of the year, Khazanah, its sole shareholder, "intends to divert all efforts and funds to an alternative company".
An alternative company was not named.
According to the letter, the aviation group is experiencing "an average monthly operating cash burn of $84 million".
Malaysia's national airline has struggled to recover from two tragedies in 2014: the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.
Khazanah took it private that year as part of a $1.5 billion restructuring, but a turnaround has been further upended by the pandemic.
Also this week, restructuring efforts were being made by KLM.
On Thursday (October 1), the Netherlands arm of Air France-KLM said it had submitted a plan to restructure operations to the Dutch state.
KLM said it includes agreements with all employees.
It's to cut costs by 15%, as well as reduce carbon dioxide emissions by 50% by 2030.
KLM is cutting its workforce by 20%, including 4,500 jobs this year.
The agreement came just in time for an October 1st deadline set by the Dutch government, in return for a $4 billion bailout.