Business

AirAsia X wraps up debt restructure, to write back RM33 bil to profit

Full effects on income statement, balance sheet to be reflected in next quarterly Bursa announcement

Updated 4 years ago · Published on 16 Mar 2022 5:32PM

AirAsia X wraps up debt restructure, to write back RM33 bil to profit
AirAsia X Bhd says the lodgement of the sanction order will now pave the way for the completion of the proposed fund raising. – Pixabay pic, March 16, 2022

KUALA LUMPUR – AirAsia X Bhd (AAX) has lodged the sanction order for its debt restructuring with the Registrar of Companies, with the formalities of the restructuring now completed.

In a statement today, AAX said the debt restructuring proposal was approved by its creditors on November 12, 2021, and by the High Court of Malaya on December 16, 2021.

“The lodgement of the sanction order means that the financial effects can be recognised in the financial statements of the company and, as a result, AAX will be able to reverse RM33 billion of liabilities and provisions for liabilities which have been waived under the scheme.

“The full effects on the income statement and balance sheet of the company will be reflected in the next quarterly Bursa Malaysia announcement,” it said.

The lodgement of the sanction order will now pave the way for the completion of the proposed fund raising, it added. 

Chief executive officer Benyamin Ismail said the latest move taken by AAX is another significant step in rebuilding the company, post-pandemic.

“We are returning to the skies in a robust position where we can once again offer the best value fares and customer service excellence which our customers deserve. 

“Cargo has been a strong lifeline for AAX and our recovery is already underway as a combination carrier with equal emphasis on cargo and passenger revenues,” he said.

He said in the next two months, AAX will recommence passenger services to several more international destinations in line with border reopening. – Bernama, March 16, 2022

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