News
Capital A not to take up US$119 million government backed loan facility
March 14th 2022
Capital A, formerly AirAsia Group, said in a regulatory filing to the Bursa Malaysia it will not proceed with a 500 million ringgit (US$119 million) loan facility under the Malaysia government's guarantee scheme because it was "unable to accept and/or fulfil certain conditions". Read More » One of the conditions to access the facility listed in Capital A's regulatory filing was that the company's founders, Tony Fernandes and Kamarudin Meranun, be guarantors for the loan. A second condition required by the Danajamin Prihatin Guarantee Scheme (DPGS) is that Capital A obtains approval from the stock exchange for its regularisation plan. The DPGS also wanted the company to remedy its negative shareholder equity to be above 40 million ringgit and 25% of its share capital or obtain a time extension to provide the regularisation plan from the Bursa Malaysia for the matching tenure of the DPGS Club Facility. "Capital A is exploring other available debt financing alternatives with acceptable terms suitable for the operations and financing requirements of the company," Capital A said. In October 2021, the company announced it had secured approval for a 500 million ringgit loan that was 80% guaranteed under the DPGS scheme.
