Class B creditors back AirAsia X's RM63.5b debt restructuring plan, one more creditors' meeting to go

KUALA LUMPUR (Nov 12): After getting full support from its Class A creditors earlier, 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, also received overwhelming support from its second class of creditors.

"The proposed debt restructuring was approved by 97.56% of the Class B creditors present and voting either in person or by proxy in the scheme creditors' meeting on Friday," AAX said in a bourse filing.

They included creditors with unsecured claims against AAX, such as engine suppliers and aircraft lessors.  

AAX is in the process of holding its last meeting for the day with its Class C creditor — aircraft manufacturer Airbus Group — to vote on its proposed debt restructuring. The airline is likely to get Airbus' backing.

AAX must get creditors holding at least 75% of the total debt value in each of three classes.

Earlier on Friday, 100% of the Class A creditors — which include airport operator Malaysia Airports Holdings Bhd and financial institutions — gave 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.

The total amount owing to the three classes of creditors stood at RM33.65 billion.

At the time of writing, shares in AAX had risen 1.5 sen or 25% to 7.5 sen apiece, giving it a market capitalisation of RM285.19 million.

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.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories