AirAsia X to convene creditor meetings, propose new plan
On February 22, 2021, the Malaysian High Court ordered AirAsia X, a long-haul subsidiary of AirAsia Group, to convene a separate creditors’ meeting within 180 days. The decision came after the Court allowed the airline to meet its creditors and vote on its restructuring plan on February 19, 2021.
The meetings are for the purpose of "considering and, if thought fit, approving with or without modification the Proposed Debt Restructuring to be proposed by AAX [AirAsia X - ed. note] and the creditors,” is written in AirAsia X bourse filing.
Additionally, on February 21, 2021, the carrier’s management reportedly offered a separate restructuring plan for aircraft lessors aiming to solve their concerns over the airline’s business viability to cover debts after the reorganization. According to the revised restructuring plan, lessors can expect to recover at least 60% of what the airline owed them.
“(The revised proposal) balances the needs of creditors and new investors without compromising the financial viability of the business plan,” the airline wrote in a document that was seen by Reuters.
Recently, media reports indicated that most AirAsia X lessors supported its restructuring plan. In addition, a group of potential new investors allegedly showed interest to continue discussions with the Malaysian air carrier and its lessors regarding new terms and commercial arrangements related to the airline’s restructuring process and fundraising.
Currently, AirAsia X seeks to restructure its total debt of 64.15 billion ringgit ($15.3 billion). In December 2020, the airline announced its plans to raise up to 200 million ringgit ($49.49 million) by issuing its shares to new investors after the debt restructuring. The airline’s restructuring plan needs approval from its creditors holding at least 75% of the total value of the debt.
However, some of the airline’s lessors, including BOC Aviation, have filed affidavits in the High Court of Malaya at Kuala Lumpur to intervene with the proposed restructuring process, arguing that the airline is “hopelessly insolvent”.
SAS marks 75th anniversary: how is it faring?
Scandinavian Airlines (SAS) celebrated its 75th anniversary on August 1, 2021. How is it faring?...
Juan Carlos Salazar of Colombia assumes office as ICAO Secretary-General
Juan Carlos Salazar of Colombia begins mandate as ICAO Secretary-General....
Qantas to appeal court judgement on ground handling case
Qantas intends to appeal a Federal Court ruling, claiming that its action to outsource ground handling functions was bac...