Long-haul Malaysian carrier Air Asia X is all set for restructuring having secured the approval of the shareholders of its parent company Air Asia Group. At an extraordinary general meeting, the survival of the Group’s affiliate was secured through the approval of all resolutions, including a rights issue and share subscription for new investors in order to raise MYR 500 million.
“These approvals have been obtained simultaneously with final negotiations being held with creditors,” it said, adding that with advisers New York-based Seabury Capital it had been “in active and productive” talks with lessors and others.
In October 2020 Air Asia X had proposed restructuring its then debt of MYR 64.15 billion into a principal amount of MYR 200 million, with the remainder being waived, while in February this year Malaysian courts granted the carrier leave to convene separate meetings with its different groups of creditors within six months, to vote on its scheme. In March, the courts also granted AirAsia X a three-month order against any proceedings that may be filed against it, which could have slowed down its restructuring.
Last year Airbus joined more than a dozen creditors to challenge the debt restructuring plan, advising the court that it stood to lose more than US$5 billion worth of orders if the proposal went through. (US$1.00 = MYR 4.12 at time of publication.)