AirAsia X debt restructuring proposal approved by creditors

KUALA LUMPUR: AirAsia X has managed to get 100% approval for its debt restructuring plan from its Class A and C scheme creditors and 97.6 per cent from its Class B creditors, thereby ensuring the passage of the troubled airline's debt proposal.

Mercury Securities Sdn Bhd, on behalf of the carrier, said the approvals were obtained following the court convened meetings (CCMs) held with three different groups of the creditors "present and voting either in person or by proxy" at the said CCMs.

In a filing with Bursa Malaysia today, the low cost airline noted that it had required "the requisite majority of 75 per cent" of the scheme creditors at the CCMs for the plan to be approved.

AAX held three meetings today with its scheme creditors to vote on its plan to restructure RM63.5 billion of debts.

On Nov 10, the Malaysian Association of Tour and Travel Agents (Matta) had called for a fairer debt restructuring plan from AAX for consumers and agents.

Failure to get creditors' approval for its business restructuring plan will likely see the carrier go into liquidation, Matta president Datuk Tan Kok Liang was reported as saying on Nov 10.

Under its debt restructuring plan, AAX is aiming to reconstitute RM63.5 billion of its debt into an acknowledgment of indebtedness for a principal amount of up to RM200 million by shaving off 99.9 per cent of its issued share capital as well as a proposed share consolidation of every 10 existing shares in the company into one share.

At 4 pm, shares of AAX rallied 33.33 per cent to eight sen with 103.86 million shares transacted.

-- BERNAMA