Back to headlines


Malaysia’s AirAsia X to stave off liquidation with $15bn debt plan

KUALA LUMPUR: Malaysian budget airline AirAsia X (AAX), the long-haul arm of AirAsia Group, said it has proposed restructuring $15.3 billion of debt and reducing its share capital by 90 to continue as a going concern.AAX said it has severe liquidity constraints, and with a return to normalcy unlikely, “imminent default of contractual commitments will precipitate a potential liquidation.”Group-wide debt restructuring and renegotiation of financial obligations, as well as updating its business model, are prerequisites to raising fresh equity and debt, which will be required to restart the airline, it said late on Tuesday.In early Wednesday trade, AAX’s share price fell 10 percent to 4.5 Malaysian sen. The group, hard hit by the COVID-19 pandemic, is seeking to reconstitute 63.5 billion Malaysian ringgit ($15.30 billion) of debt into a principal amount of 200 million Malaysian ringgit and for the balance to be waived.AAX also proposed reducing issued share capital by 90 percent and consolidating every 10 existing ordinary shares into one share.AAX’s announcement comes days

News source ~ Arab News