AirAsia X proposes to pay 0.5% of RM34bil debt owed to creditors

AirAsia X said in a filing that it had set Nov 12 for creditor meetings to vote on the restructuring proposal.


19/10/2021 5:25:00 AM

AirAsia X said in a filing that it had set Nov 12 for creditor meetings to vote on the restructuring proposal.

KUALA LUMPUR: AirAsia X Bhd (AAX) is proposing to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts so that it can restructure RM33.65bil of liabilities, a document seen by Reuters shows.

The low-cost long-haul airline, a sister carrier toAirAsia Group Bhd, said in a filing with the stock exchange that it had set Nov 12 for creditor meetings to vote on the restructuring proposal.“To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring,” the airline said in a 127-page explanatory statement for the meeting seen by Reuters that is being sent to creditors.

Half of the total liability is the cost of terminating airplane orders from its largest creditor Airbus SE for 78 A330neo widebodies and 30 A321neo narrowbodies, the document said.AAX also proposed that if it were to garner more than RM300mil in annual earnings before interest, tax, depreciation and amortisation, lease rentals and restructuring costs during its 2023-2026 financial years, all creditors except Airbus would be entitled to 20% of those earnings.

It is one of many carriers in the Asia-Pacific region to have entered a court-overseen debt restructuring process to survive the pandemic.Others include Malaysia Airlines, Virgin Australia, Thai Airways and Philippine Airlines.The 0.5% of debt owed to each creditor will be paid from operating cash flow one year after the debt restructuring goes into effect, according to the airline. — Reuters

Man pleads guilty to abducting four-year-old Australian girl from campsite last year | Malay Mail

Read more: The Star »

King undergoing health checks, follow-up treatments at IJN, says Istana Negara

PETALING JAYA: The King has been undergoing health checks and follow-up treatment at the National Heart Institute's (IJN) Royal Ward since Saturday (Jan 22), says Istana Negara. Read more >>

I filed a claim last yr at tribunal court costing rm5 only and got my full refund on prepaid AirAsiaX ticket 2 weeks before scheduled hearing. Everyone should have done it.

Wee: I'm willing to debate Guan Eng on cabotage policy on Nov 2The transport minister says the date was proposed by TV3. IN PARLIAMENT, so that whatever are to be said will be made official. Be brave. You are getting seriously pale!! Imran Khan’s Self-Interest & Focus on Opposition will lead Pakistan to Destruction. How will Pakistan prepare for the events of the future in its current form and stature? Muhammad Qasim saw this dream in 2021, which today we see happening in reality. I honestly hope that open debate between politician gonna be a norm in the future.

AirAsia offers 30pc discount for all seats to Sarawak | New Straits TimesKUALA LUMPUR: AirAsia Group Bhd is offering 30 per cent off all seats for flights from Kuala Lumpur to Kuching, Miri, Sibu and Bintulu to mark the reopening of interstate travel into Sarawak.

Budget 2022: Hotel operators in Malaysia propose extension of SST exemption until Dec 2022 | Malay MailKUALA LUMPUR, Oct 18 — The Malaysia Budget and Business Hotel Association (MyBHA) has proposed that the government extend the sales and service tax (SST) exemption period until December next year, in the Budget 2022 scheduled to be tabled on October 29. Its president, Dr Sri Ganesh Michiel said...

Moody’s upbeat on IOI outlook, riding on earnings’ growth, higher CPO pricesKUALA LUMPUR: Moody’s Investors Service expects IOI Corporation Bhd’s leverage to decline to by earnings growth amid high crude palm oil (CPO) prices and debt reduction.

Bollywood actor Shah Rukh Khan pays for son’s jail canteen expensesAryan Khan and five other accused were arrested in connection with the cruise ship drug raid case earlier this month.

Jonatan pays tribute to everyone on team, calling them heroesPETALING JAYA: Indonesia’s hero Jonatan Christie paid tribute to teammates including non-playing personnel after they lifted the Thomas Cup after 19 years to the delight of the badminton-crazy nation.