KUALA LUMPUR – AirAsia X has managed to get 100% approval for its debt restructuring plan from its Class A and Class C scheme creditors and 97.6% from its Class B creditors, thereby ensuring the passage of the troubled airline’s debt proposal.
Mercury Securities Sdn Bhd, on behalf of the carrier, said the approvals were obtained following court convened meetings (CCMs) held with three different groups of the creditors “present and voting either in person or by proxy” during the CCMs.
In a filing to Bursa Malaysia today, the low-cost airline noted that it had required “the requisite majority of 75%” of the scheme creditors at the CCMs for the plan to be approved.
AirAsia X held three meetings today with its scheme creditors to vote on its plan to restructure RM63.5 billion of debts.
On Wednesday, the Malaysian Association of Tour and Travel Agents (Matta) called for a fairer debt restructuring plan from AirAsia X for consumers and agents.
Failure to get creditors’ approval for its business restructuring plan will likely see the carrier go into liquidation, Matta president Datuk Tan Kok Liang was reported as saying.
Under its debt restructuring plan, AirAsia X is aiming to reconstitute RM63.5 billion of its debt into an acknowledgment of indebtedness for a principal amount of up to RM200 million by shaving off 99.9% of its issued share capital and a proposed share consolidation of every 10 existing shares in the company into one share.
In a separate statement today, AirAsia X said the overwhelming and near-unanimous support will be presented for court sanction in the coming weeks, and once approved, the airline will embark on its recapitalisation plan, which was approved by its shareholders in June.
“Completion is expected in the first quarter of 2022, after which the airline will be well poised to compete very effectively in the markets where it will operate,” the airline’s co-founder and director Tan Sri Tony Fernandes said.
“We wish to assure all passengers affected by the restructuring that it is AirAsia X’s firm intention to put in place travelling privileges in the form of travel credits, which can be utilised for flight tickets’ future purchases once international borders reopen.”
At the market close today, shares of AirAsia X rallied 25% to 7.5 sen with 116.57 million shares transacted. – Bernama, November 12, 2021
