KUALA LUMPUR (Nov 12): AirAsia X Bhd (AAX), which is holding three separate meetings with its scheme creditors on Friday (Nov 12) to vote on its plan to restructure RM33.65 billion of debts, has received full support from Class A creditors.
Class A creditors, which include airport operator Malaysia Airports Holdings Bhd and financial institutions, have given the go-ahead for the low-cost, long-haul affiliate of AirAsia Group Bhd to write down their dues totalling RM485.24 million by a whopping 99.5% to RM2.4 million.
In a bourse filing, AAX said the proposed debt restructuring had been approved by 100% of the Class A creditors present and voting either in person or by proxy in the scheme creditors’ meetings held on Friday.
It is in the process of holding separate meetings with Class B and Class C creditors to vote on its proposed debt restructuring. Class B creditors comprise engine suppliers, aircraft lessors, travel agents and passengers, while the sole Class C creditor is aircraft manufacturer Airbus Group.
“The proposed debt restructuring is only approved if the requisite majority of 75% of Class B and Class C creditors also approve the same in their respective meetings. Further announcements will be made once the meetings for Class B and Class C creditors have been concluded,” said AAX.
The total amount owing to the three classes of creditors stood at RM33.65 billion.
At the time of writing on Friday, shares in AAX had risen by 16.67% or one sen to seven sen apiece, with some 47.49 million shares transacted. This gave the airline a market capitalisation of RM266.17 million. The stock had fallen 12.5% year-to-date.
In October last year, the carrier proposed to reconstitute RM63.5 billion of its debts into an acknowledgement of indebtedness for a principal amount of up to RM200 million by shaving off 99.9% of its issued share capital, as well as a proposed share consolidation of every 10 existing shares in AAX into one share. The RM63.5 billion figure was reduced to RM33.65 billion after a proof of debt exercise conducted by AAX to determine and finalise the list of scheme creditors and the value of their scheme amount.
Following the debt restructuring, it is also proposing a renounceable rights issue of new shares to raise gross proceeds of up to RM300 million from its existing shareholders, as well as a proposed issuance and allotment of new AAX shares to raise another RM200 million.
For the 18-month financial period ended June 30, 2021, AAX had negative shareholders’ funds of RM31.53 billion and its current liabilities of RM32.65 billion exceeded current assets of RM390 million by RM32.26 billion. Its accumulated losses stood at RM33.06 billion.