from my sources the main problem is that VK has NCAA approvals for just alteon and gecat.This two companies have no slots for initial 737 available till year end,which VK is finding unacceptable.They are investigating several options,as its much simpler if the pilot already has the 737 rating on his foreign licence.Believe me its also a major heqadache for them!
The mm2 controversy seems dead and buried as far as i know!