KUALA LUMPUR (Sept 15): The High Court today granted an extension to AirAsia X Bhd (AAX) to hold its creditor meeting, which was supposed to be held by the latest this month, to March 2022.
The decision was made by Judicial Commissioner Ong Chee Kwan following online proceedings today to seek the extension.
It is understood the meeting will now be held on or before March 17, 2022. A statement is expected to be issued by the airline possibly later today.
Last Feb 19, Ong granted leave (permission) for AAX to hold a meeting with its creditors and this was supposed to be for a period 180 days or six months over its proposed restructuring plan.
All in all, there are stipulated 14 different creditors and they are divided into three different classifications — the first being Malaysia Airports Holdings Bhd, the second consists of the other creditors, and the third being aircraft maker Airbus.
Ong in his February decision said the case did not involve "proprietary claims" of the creditors nor did it involve alteration of the creditors' rights with third parties.
The court said that AAX had failed to demonstrate that it was capable of reviving its financial health.
"It is contended that AAX has failed to demonstrate that it is viable, feasible or workable to turn the financial predicaments of the company around. This is because there is no certainty of fresh injection of capital or entry of a white knight to facilitate the survival of AAX," Ong surmised in his judgement then.
At the outset, AAX proposed that it shall acknowledge and settle only up to RM200 million of debt due and owing to scheme creditors, which is valued at approximately RM63.5 billion.
In today's proceedings, AAX was represented by S Suhendran and Gopal Sreenevasan while BOC Aviation Ltd, Macquarie Aircraft Leasing Services and Lavender Leasing, which are among the creditors, were represented by Kwan Will Sen from Lim Chee Wee Partnership.