KUALA LUMPUR (Oct 18): Shares in AirAsia X Bhd (AAX) fell 5% in the mid-morning after the carrier proposed to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts, so that it can restructure RM33.65 billion (US$8.1 billion) of liabilities.

At 9.55am, AAX had fallen half a sen to 9.5 sen, valuing it at RM394.07 million.

In a bourse filing on Monday, AAX said it had set Nov 12 for creditor meetings to vote on the restructuring proposal.

"To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring," it added.

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AirAsia X proposes paying 0.5% of US$8.1b debt