AirAsia X raising RM300 million via call cash and RM200 million through share subscription from new investors
KUALA LUMPUR (Dec 14): AirAsia X Bhd (AAX), which is in the midst of negotiating with its creditors for debt and liabilities restructuring, is making a cash call to existing shareholders to raise up to RM300 million.
On top of that, it is also issuing new shares to new investors to raise RM200 million fresh capital.
It said the equity fundraising exercise is a critical component of the comprehensive restructuring and recapitalisation plan announced earlier, and will support the implementation of the group's revised business plan.
Meanwhile, certain creditors demanded AAX to have a deeper slash on the low-cost carrier's share capital.
As a result, AAX announced that it is revising the proposed capital reduction of 90% to 99.9%, which will comprise a reduction of its issued share capital of approximately RM1.53 billion to RM1.53 million. To put things in perspective, share capital of RM1 will be reduced to 0.1 sen.
In a statement, the low-cost long-haul airline said the credit arising from the proposed share capital reduction will be used to offset part of the accumulated losses.
Meanwhile, its proposed share consolidation after the share capital reduction, which entails the consolidation of every 10 existing AAX shares into one share, remains unchanged.
AAX noted that its shareholders' funds will remain in deficit after the capital reduction but the consolidation of shares post-capital reduction will provide a platform to seek fresh funding from existing shareholders.
AAX added that the funds to be raised are adequate for several scenarios "envisaged within our business plan" amid the "evolving and dynamic" environment.
However, the company must first secure the approval of its creditors for the debt restructuring scheme, it said, noting that several lessors have intervened in the restructuring proceedings to register their objections to the scheme.