KUALA LUMPUR: Long-haul budget airline AirAsia X Bhd (AAX) has proposed a separate restructuring programme for its aircraft lessors that aims to tackl.
(AAX) has proposed a separate restructuring programme for its aircraft lessors that aims to tackle their concerns, citing chance to recover rental losses, a document seen by Reuters shows.
The airline, an affiliate of AirAsia Group, has for months been trying to reconstitute 64.15 billion ringgit ($15.89 billion) of debt into 200 million ringgit of debt. More than a dozen creditors, mostly lessors, had intervened in court to challenge a proposal that would have meant a haircut for them of 99.7%.
The new proposal for lessors is a key step as the airline looks to win creditors approval for its restructuring.
The proposal seeks to address lessors concerns about their forward commercial agreements and the viability of the airline s business after recapitalisation, according to the document, which comprises slides describing the plan.
KUALA LUMPUR (Feb 19): The High Court here today granted leave for budget airline AirAsia X Bhd (AAX) to hold meetings with its creditors.
The court has also separated the 14 creditors into three different classifications the first being Malaysia Airports Holdings Bhd (MAHB), the second consists of the other creditors, and the third being aircraft maker Airbus.
The decision today was made by Judicial Commissioner Ong Chee Kwan via video proceedings.
In his decision, Ong surmised that the case does not involve ‘proprietary claims’ of the creditors nor does it involve alteration of the creditors’ rights with third parties.
The court said that AAX has failed to demonstrate that they are capable of reviving its financial health.
Malaysia's long-haul budget airline AirAsia X Bhd (AAX) has obtained court approval to convene creditor meetings, The Edge Financial Daily reported on Friday.
Friday, 19 Feb 2021 04:33 PM MYT
The airline said the alternative was liquidation with no returns to creditors. ― Reuters pic
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KUALA LUMPUR, Feb 19 Malaysia’s long-haul budget airline AirAsia X Bhd (AAX) has obtained court approval to convene creditor meetings,
The Edge Financial Daily reported today.
The newspaper reported that the High Court has separated the airline’s 14 creditors into three classifications the first for airport operator Malaysia Airports Holdings Bhd, the second for other creditors, and the third for planemaker Airbus SE.
The airline did not immediately respond to a query seeking confirmation of the court decision.