Malaysian court orders AirAsia X to convene creditor meetings within six months

(Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

(Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

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KUALA LUMPUR (Feb 22): Malaysia's high court has ordered budget long-haul airline AirAsia X Bhd (AAX) to convene separate meetings with its different groups of creditors within 180 days from the date of order.

The meetings are for the purpose of "considering and, if thought fit, approving with or without modification the Proposed Debt Restructuring to be proposed by AAX and the creditors", AAX said in a bourse filing on Monday. It did not state the date of the order.

The Kuala Lumpur High Court ruled that aircraft lessors and planemaker Airbus SE were to be treated as unsecured creditors, but that Airbus would be placed in a separate class from other unsecured creditors. The ruling was made last Friday, theedgemarkets.com reported.

The airline has been looking to restructure RM64.15 billion of debt.

The carrier has also proposed a separate restructuring scheme for aircraft lessors that aims to address their concerns, citing the chance to recover rental losses, a document seen by Reuters showed. 

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