-->

Type something and hit enter

Articles


Videos



On
AirAsia X proposes to pay 0.5% of RM34bil debt owed to creditors

KUALA LUMPUR: AirAsia X Bhd (AAX) is proposing to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts so that it can restructure RM33.65bil of liabilities, a document seen by Reuters shows.

The low-cost long-haul airline, a sister carrier to AirAsia Group Bhd, said in a filing with the stock exchange that it had set Nov 12 for creditor meetings to vote on the restructuring proposal.

“To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring,” the airline said in a 127-page explanatory statement for the meeting seen by Reuters that is being sent to creditors.

Half of the total liability is the cost of terminating airplane orders from its largest creditor Airbus SE for 78 A330neo widebodies and 30 A321neo narrowbodies, the document said.

AAX also proposed that if it were to garner more than RM300mil in annual earnings before interest, tax, depreciation and amortisation, lease rentals and restructuring costs during its 2023-2026 financial years, all creditors except Airbus would be entitled to 20% of those earnings.

It is one of many carriers in the Asia-Pacific region to have entered a court-overseen debt restructuring process to survive the pandemic.

Others include Malaysia Airlines, Virgin Australia, Thai Airways and Philippine Airlines.

The 0.5% of debt owed to each creditor will be paid from operating cash flow one year after the debt restructuring goes into effect, according to the airline. — Reuters

https://www.thestar.com.my/business/business-news/2021/10/19/airasia-x-proposes-to-pay-05-of-rm34bil-debt-owed-to-creditors


 

Back to Top
Back to Top