AirAsia continues not to be classified as PN17 company

AirAsia continues not to be classified as PN17 company
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KUALA LUMPUR (May 27): AirAsia Group Bhd said it continues not to be classified as a Practice Note 17 (PN17) company as part of the relief measures provided by Bursa Securities on listed issuers that have triggered the criteria for the classification.

"Air Asia will not be classified as a PN17 listed issuer and will not be required to comply with the obligations under paragraph 8.04 and PN17 of the Main Market listing requirements for a period of 18 months from the date of the first relief announcement," the group said in a bourse filing.

The date of the first relief announcement is July 8, 2020, and the 18-month period ends on Jan 7, 2022.

AirAsia said it will re-assess its condition and announce whether it continues to trigger any of the suspended criteria upon the expiry of the 18 months.

Bursa Securities via its letters dated April 16, 2020 and February 17, 2021 granted relief to companies that have triggered the criteria from April 17, 2020 to June 30, 2021, from complying with the related obligations for 18 months.

On July 8, 2020, AirAsia’s external auditors Ernst & Young PLT issued an unqualified audit opinion with material uncertainty relating to going concern in respect of its audited financial statements for the financial year ended Dec 31, 2019.

AirAsia has also triggered the PN17 criteria after carrying negative shareholders’ equity. The company is currently in the midst of raising between RM2 billion to RM2.5 billion to stay afloat as the aviation sector is still bearing the brunt of the Covid-19 pandemic.

Shares of AirAsia slid 0.5 sen or 0.58% to 86 sen, valuing the low-cost carrier at RM3.26 billion.

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S Kanagaraju