KUALA LUMPUR:Lessor BOC Aviation Limited (BOCA) has asked a Malaysian court to dismiss AirAsia X Bhd's debt restructuring scheme as it rules out a debt-to-equity swap and gives too much power to Airbus as a creditor, an affidavit filed by a top BOCA executive shows.
AirAsia X (AAX), the long-haul unit of budget airline AirAsia Group, has proposed to reconstitute $15.3 billion of debt into a principal amount of 200 million ringgit ($48 million) and have the rest waived. The airline, which has posted losses since June 2019, said the alternative was to face liquidation with no returns to creditors. It is now seeking court approval to convene a meeting with creditors to vote on the scheme.
In an affidavit filed at the Kuala Lumpur High Court on Nov. 26 seen by Reuters, BOCA Chief Operating Officer David Walton said the restructuring was unfair as it writes off 99.7% of claims without offering creditors an equity stake.
BOCA became one of Norwegian Air's top shareholders in May after agreeing with other lessors to convert debt to equity. The airline sought bankruptcy protection last month after failing to get more state support.{nL1N2I40P5]
Walton also questioned AAX's unfair debt calculations, given most of the amount was tied to aircraft orders from Airbus SE that have not been delivered.
AAX had previously disclosed that BOCA had challenged the restructuring, but had not given the reasons for it.
"Aircraft purchase commitments cannot be considered as an accurate assessment of the accrued and crystallised debts," Walton said in the affidavit supporting the lawsuit by BOCA.
In other recent restructurings such as Thai Airways International PCL and Virgin Australia, the main creditors have been current financiers, lessors and suppliers, not plane manufacturers based on orders.
AAX's restructuring plan needs approval from creditors holding at least 75% of the total value of the debt.
A source with direct knowledge of the matter has told Reuters that Airbus has nearly 75% on its own, giving lessors relatively little say.
Walton said BOCA should be categorised as a financing creditor separately from an equipment manufacturer like Airbus as they have different interests.
AAX did not immediately reply to a request for comment.
BOCA declined to comment, saying it is engaged in legal action, while Airbus declined to comment citing confidentiality.
Last month, a court in Britain ordered AAX to pay BOCA $23.4 million for outstanding aircraft lease liabilities. BOCA registered the foreign judgment in Malaysia last week.
AAX announced on Monday plans to raise $123 million through a rights issue from existing shareholders and share subscription from new investors.
The fundraising however is contingent on approval for the restructuring scheme and at least a dozen creditors have filed objections to it. AAX said it will continue to engage with creditors to allay their concerns.
Reuters
Tue Dec 15 2020
![Exclusive: Lessor BOC Aviation says AirAsia X restructuring favours Airbus, calls for debt-to-equity swap Exclusive: Lessor BOC Aviation says AirAsia X restructuring favours Airbus, calls for debt-to-equity swap](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-10/81603462686_Airasia.jpg)
BOCA COO David Walton said the restructuring was unfair as it writes off 99.7 pct of claims without offering creditors an equity stake. REUTERS pic
AWANI Ringkas: Pemain bola bawa kerambit juga suspek baling bom petrol
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
![Enam mengaku tidak bersalah culik warga China Enam mengaku tidak bersalah culik warga China](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723702959_TBMahkamahSesyen.jpg)
Enam mengaku tidak bersalah culik warga China
Sepasang suami isteri dan empat individu didakwa menculik seorang lelaki warga China untuk mendapatkan wang tebusan berbentuk mata wang kripto.
![Bursa gantung jualan singkat SP Setia Bursa gantung jualan singkat SP Setia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61722341186_BursaMalaysia.jpg)
Bursa gantung jualan singkat SP Setia
Bursa Malaysia menggantung jualan singkat SP Setia Bhd bagi baki tempoh hari ini selepas penyusutan harga yang ketara.
![MITI mula siasat duti antilambakan import gulungan rata besi disadur timah MITI mula siasat duti antilambakan import gulungan rata besi disadur timah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723697210_TBMiti.jpg)
MITI mula siasat duti antilambakan import gulungan rata besi disadur timah
MITI menjelaskan tindakan itu diputuskan selepas menerima petisyen daripada pengeluar tempatan, Perusahaan Sadur Timah Malaysia (Perstima) Bhd.
!['Nidza Afham pernah cakap mahu jadi terkenal, tapi bukan macam ini' - Kakak 'Nidza Afham pernah cakap mahu jadi terkenal, tapi bukan macam ini' - Kakak](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723700126_NidzaAfhammeningg.jpg)
'Nidza Afham pernah cakap mahu jadi terkenal, tapi bukan macam ini' - Kakak
Kakak kepada Allahyarham penyanyi Nidza Afham iaitu Irfahanie memaklumkan adiknya itu pernah berhasrat untuk menjadi penyanyi terkenal.
![Punca kematian Muhammad Nidza Afham diketahui selepas bedah siasat - KPN Punca kematian Muhammad Nidza Afham diketahui selepas bedah siasat - KPN](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723701968_TBNidzaAfham.jpg)
Punca kematian Muhammad Nidza Afham diketahui selepas bedah siasat - KPN
Polis belum dapat mengklasifikasikan kematian Muhammad Nidza Afham Mokhtar yang mayatnya ditemukan di Sungai Klang petang semalam.
![Abang ipar Nidza Afham mohon netizen henti buat spekulasi Abang ipar Nidza Afham mohon netizen henti buat spekulasi](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/51723699828_NidzaAfhammeningg.jpg)
Abang ipar Nidza Afham mohon netizen henti buat spekulasi
Abang ipar kepada Allahyarham penyanyi Nidza Afham, Effie Amron memohon semua pihak tidak membuat sebarang spekulasi mengenai berita kematian adik iparnya itu.
![Lima negara, Kesatuan Afrika, PBB komited teruskan rundingan damai Sudan Lima negara, Kesatuan Afrika, PBB komited teruskan rundingan damai Sudan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723696855_TBSUDAN.jpg)
Lima negara, Kesatuan Afrika, PBB komited teruskan rundingan damai Sudan
Kenyataan bersama itu dikeluarkan oleh Amerika Syarikat (AS), Switzerland, Arab Saudi, Mesir, Emiriah Arab Bersatu (UAE), Kesatuan Afrika dan PBB.
![Allahyarham Nidza Afham dalam proses kumpul duit kahwin - Adik Allahyarham Nidza Afham dalam proses kumpul duit kahwin - Adik](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723699567_NidzaAfhammeningg.jpg)
Allahyarham Nidza Afham dalam proses kumpul duit kahwin - Adik
Penyanyi Aufahanie memberitahu Allahyarham abangnya yang juga penyanyi Nidza Afham mempunyai perancangan untuk berkahwin dengan teman wanitanya.
![KKM nafi remaja menyamar doktor rawat pesakit KKM nafi remaja menyamar doktor rawat pesakit](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/51723275350_remajaperempuan.jpg)
KKM nafi remaja menyamar doktor rawat pesakit
Kementerian Kesihatan menafikan remaja yang menceroboh Hospital Sultan Idris Shah, Serdang, baru-baru ini melakukan prosedur kepada pesakit.
![Kerugian bersih Airasia X meningkat kepada RM305.24 juta Kerugian bersih Airasia X meningkat kepada RM305.24 juta](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2018-10/41539665741_AirAsiaX.jpg)
Kerugian bersih Airasia X meningkat kepada RM305.24 juta
Perolehan hasilnya turut berkurangan kepada RM91.44 juta daripada RM1.01 bilion sebelum ini.
![AirAsia X mungkin kembali ke India AirAsia X mungkin kembali ke India](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2013-06/41370872336_295x200.jpg)
AirAsia X mungkin kembali ke India
Airasia X melihat kemungkinan akan memulakan kembali laluan ke eropah dan India yang dihentikan akibat kos tinggi sebelum ini.