KUALA LUMPUR (June 1): AirAsia X Bhd's (AAX) shareholders have approved of its restructuring plan, including a cash call to raise up to RM300 million plus share placement to a special purpose vehicle (SPV).

In a statement, the low-cost carrier said that it received approval from its shareholders after its extraordinary general meeting today.

It noted that all resolutions were passed with at least a 99.8% margin, with the approvals being obtained with final negotiations being held with creditors.

"The company and its restructuring advisers, New York-based Seabury Capital, have been in active and productive discussions with lessors and other creditors after the approval granted by the court to convene the Court Convened Meeting. This is currently scheduled for late July or August.

AAX, which slipped into a net loss of RM5.67 billion in the first quarter ended March 31, 2021, said it is committed to resuming commercial operations as soon as possible on completion of the restructuring plan and the opening of international borders.

In a bourse filing, the low-cost carrier announced that all five of the resolutions scheduled for today were passed.

These resolutions were the proposed capital reduction to shave off 99.9% of its issued share capital, as well as a proposed share consolidation which is to consolidate every 10 existing ordinary shares in AAX into one share.

Shareholders also voted on a proposed renounceable rights issue of new AAX shares to raise gross proceeds of up to RM300 million, and the proposed issuance and allotment of new AAX shares to raise RM200 million.

Furthermore, shareholders approved of the proposed issuance and allotment of new AAX shares to a SPV under the restructuring plan.

Under the plan, AAX's deputy chairman Datuk Lim Kian One will spearhead the SPV to pump in at least RM50 million in fresh capital.

Lim's SPV will commit a minimum subscription of RM50 million, with the option to subscribe to an additional 15% of the enlarged total number of AAX shares after the proposed rights issue and share subscription.

The proposed capital reduction of 90% to 99.9%, which will comprise a reduction of its issued share capital of approximately RM1.53 billion to RM1.53 million.

AAX posted its largest quarterly net loss of RM5.67 billion for the quarter ended March 31, 2021, as revenue shrank 29.6% quarter-on-quarter to RM38.49 million after a majority of its aircraft fleet remained grounded since mid-April last year amid the Covid-19 pandemic, apart from a limited number of cargo and charter flights.

Shares in AAX gained one sen to 7.5 sen, valuing it at RM311.11 million, with 9.28 million shares traded.