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Malaysia’s High Court allows AirAsiaX more time to reach settlement with creditors
March 18th 2021
AirAsia X (AAX) said yesterday Malaysia’s High Court had granted a restraining order against legal action for three months. Read More » "It allows creditors an opportunity for amicable deliberation on the proposed debt restructuring without extraneous considerations," AAX told the Bursa Malaysia. The LCC’s proposed debt restructuring, which requires the approval of creditors, seeks to reduce its outstanding debt burden. Terms of the submission include a reduction of the 64 billion ringgit (US$15.6 billion) the company owes to unsecured creditors, to a principal amount of 200 million ringgit. It also seeks to have the balance in excess of that amount waived, as well as all contracts and agreements previously entered into to be deemed terminated. Some creditors, among them aircraft lessor, BOC Aviation and Malaysia Airports Holdings Berhad, could continue legal proceedings as they were carved out from the order, legal representatives of the two companies said after the High Court handed down its decision.
