That is correct. Mr. Mueller the CEO himself said MAS in the restructure process is technically bankrupt. It is similar to Chapter 11 but in Malaysian style. Fire all staff overnight and re-employee 2 thirds of them at a reduced pay to keep airline moving. Much faster than US style but similar in the aim.

To answer other questions in this thread:

MAS will next cancel chunks of routes and then sell aircrafts.

MAS also divides its business to different companies and the ultimate aim is that different companies will have to make a profit on their own.

Lots of changes will come in the coming year but oneworld membership is not affected. The CEO states that he will close MAS operated lounges to take full advantage of oneworld facilities in stations that is not making money or facing withdrawn. He also states a slimmed down MAS will use oneworld partners to reach destinations that MAS can not serve on its own. So there is no need for speculation on MH's oneworld membership.

The CEO also said there were European or Middle East airlines are in touch with MAS to purchase equities in the company. But he states that before MAS back to normal the company will not sell equities to foreign investors from Middle East. (I make an educated guess here that the said ME investor is Etihad)

All information above is from Malaysian local English newspapers between 30th May to 3rd June.