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AirAsia X granted extension for proposed debt restructuring
November 20th 2020
AirAsia X (AAX) said today it had been granted two more months to work on a proposed debt restructuring and share consolidation. Read More »
The LCC group said in a regulatory filing to the Bursa Malaysia it had received an extension, to January 6, 2021 to submit its proposed debt restructuring plan. It had been due by November 6.
AAX said it was working with creditors to agree to restructure the total outstanding amount of 200 million ringgit (US$49 million) with the balance in excess of that amount to be waived and all contracts and agreements previously entered into deemed terminated.
The airline group, which has operating bases in Indonesia, Malaysia and Thailand, also had proposed reducing the number of shares it had on issue by 90%, with 10 existing ordinary shares consolidated into one share.
Any deal requires court approval in Malaysia and agreement of 75% of creditors by value. It also needed the blessing of the Bursa Malaysia and the green light from shareholders.
"The implementation of the scheme is ongoing and its success is critical to the ability of the company to raise new funding, either as debt or equity, and to continue as a going concern," AAX said in its financial results for the three months to September 30.
The notes to the financial accounts said AAX's current liabilities exceeded its current assets by 1.1 billion ringgit for the year ended December 31, 2019.
Current liabilities relating to aircraft lessors, maintenance service providers and a financial institution amounted to 894 million ringgit.
"The group and the company have obtained payment deferrals on outstanding amounts due to certain lessors and are engaging with the lessors and maintenance service providers to seek payment deferrals and concessions," the AAX financial accounts said.
"In addition, the group and the company have received an offer from the said financial institution to defer principal repayments and is finalising the terms and conditions for such deferral."
AAX reported a net loss of 308.5 million ringgit for the three months to September 30, 2020, a deterioration from a net loss of 229.9 million ringgit a year earlier.
Revenue collapsed by 94%, to 60 million ringgit, from one billion ringgit previously."During the quarter ended September 30, the company suffered from the full impact of the COVID-19 pandemic," AAX said. AAX scheduled flight operations were suspended in April and the majority of its fleet is parked.
