Malaysian has been in deep sh1t financially for some time. In the mid nineties, they sold two B744s (OEC & OED) to QF at firesale prices because they were desperate for cash. QF discovered (prior to signing the contract) that Malaysian didn't own the engines, they'd sold them & were leasing them back. Effectively, they had US$8 billion of debt with very few assets as they had already sold the farm.
I don't know their current financial status (they have divested themselves of the loss making domestic operation) but it would be prudent for QF to do the most in-depth Due Diligence on Malaysian before proceeding with any further discussions.