It's Do Or Die For AirAsia X

AirAsia X Bhd (AAX), now at an existential crossroads, is in dire need of massive debt forgiveness from its creditors, or be prepared to shut its business down for good, reported. The low-cost, medium-haul airline, which has grounded all its flights due to the Covid-19 outbreak, is asking creditors and suppliers to forgo over RM63bil in liability and instead accept a maximum RM200mil in payment. While the proposal may sound atrocious, analysts think many creditors would, in fact, accept the offer. After all, if the proposed debt restructuring fails, the creditors will get close to nothing as AAX will be liquidated. AAX’s aircraft lessors, in particular, may also struggle to redeploy their aircraft to other airlines during the pandemic, according to CGS-CIMB Research analyst Raymond Yap. Read more