KUALA LUMPUR – News on AirAsia X Bhd’s (AAX) fresh restructuring proposal has sparked buying interest in the long-haul budget carrier’s shares.
At 10.30am, AAX shares rose 1.5 sen to 9.5 sen, with 263.27 million units changing hands, overtaking ACE Market debutant Mobilia Holdings Bhd to become the most actively traded counter in the early session.
The news also boosted shares of AAX’s sister company, AirAsia Group Bhd, which saw its shares rising 10 sen to 91.5 sen, with 134.81 million units transacted.
AirAsia Group ranked as the eighth most actively traded counter as at 10.30am.
Reuters reported that AAX has proposed a separate restructuring programme for its aircraft lessors, aimed at tackling their concerns.
It said the proposal seeks to address lessors’ concerns about their forward commercial agreements and the viability of the airline’s business after recapitalisation.
“Under the revised proposal, AAX said lessors are expected to recover at least 60% of what they are owed,” said the report, adding that the new proposal is a key step as the airline looks to win creditors’ approval for its restructuring.
AAX has been trying for months to reconstitute RM64.15 billion of debt into RM200 million, said Reuters.
“More than a dozen creditors, mostly lessors, have intervened in court to challenge a proposal that would have meant a haircut for them of 99.7%.” – Bernama, February 23, 2021
