KUALA LUMPUR: AirAsia X Bhd
(AAX) is proposing to pay simply 0.5% of debt owed to every of its collectors and to terminate all present contracts in order that it might restructure RM33.65bil of liabilities, a doc seen by Reuters reveals.
The low-cost long-haul airline, a sister service to AirAsia Group Bhd, stated in a submitting with the inventory alternate that it had set Nov 12 for creditor conferences to vote on the restructuring proposal.
“To keep away from a liquidation and to permit the airline to fly once more, the one choice is for AAX to undertake the proposed debt restructuring,” the airline stated in a 127-page explanatory assertion for the assembly seen by Reuters that’s being despatched to collectors.
Half of the whole legal responsibility is the price of terminating airplane orders from its largest creditor Airbus SE for 78 A330neo widebodies and 30 A321neo narrowbodies, the doc stated.
AAX additionally proposed that if it have been to garner greater than RM300mil in annual earnings earlier than curiosity, tax, depreciation and amortisation, lease leases and restructuring prices throughout its 2023-2026 monetary years, all collectors besides Airbus can be entitled to twenty% of these earnings.
It’s certainly one of many carriers within the Asia-Pacific area to have entered a court-overseen debt restructuring course of to outlive the pandemic.
Others embody Malaysia Airways, Virgin Australia, Thai Airways and Philippine Airways.
The 0.5% of debt owed to every creditor can be paid from working money circulation one 12 months after the debt restructuring goes into impact, based on the airline. — Reuters
