Most of AirAsia X Bhd’s lessors support a restructuring plan, and the Malaysian airline has received interest from potential investors for fundraising after reorganization, court documents filed this month show, Reuters reported. In emails attached to the court filings, supportive lessors said that they wanted to continue discussions with the budget airline and potential new investors, seeking more equitable terms and new commercial arrangements.
The parent company of Malaysia Airlines said on Thursday it was nearing the end of a debt restructuring process which it hopes will be completed by the end of the first quarter of this year, Reuters reported. Malaysia Aviation Group (MAG) said it was in talks with around 40 creditors and lessors to take a haircut in its 16-billion-ringgit ($3.99 billion) debt restructuring plan, adding it was confident it could achieve a “win-win” result for all.
Planemaker Airbus has said it stands to lose more than $5 billion worth of orders if AirAsia X Bhd’s (AAX) debt restructuring scheme goes through, court documents showed, joining more than a dozen creditors that have challenged the Malaysian low-budget carrier’s plan, Reuters reported. Airbus’s challenge comes as AAX defends its scheme from claims by key lessor BOC Aviation (BOCA) that it favoured Airbus and lacked a debt-to-equity swap offer for creditors. In a Dec.
Debt-laden Sarawak Cable Bhd (SCable) has struck deals with financial institutions to restructure the loans of its affected subsidiaries, The Star Online reported. SCable said the affected companies (subsidiaries) have entered into the relevant agreements (RAs), including the restructuring agreements, with their respective lenders, with all the agreements having been signed by Dec 11,2020. The parties have agreed to vary the terms and restructure the existing facilities in accordance with the affected companies’ restructuring scheme (RS), the company told Bursa Malaysia on Dec 11.
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, Reuters reported. 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.
Malaysia’s AirAsia X Bhd (AAX) said on Monday it proposed raising 500 million ringgit ($123 million) through a rights issue to existing shareholders and a share subscription for new investors, Reuters reported. The airline, the long haul arm of AirAsia Group, said in a stock exchange filing that it intends to raise up to 300 million ringgit through the rights issue.
AirAsia X Bhd expects the outcome of its ongoing scheme of arrangement under its debt restructuring exercise to inject fresh equity will only be known by the end of June next year, The Edge Markets reported. The long-haul budget airline said this when announcing to Bursa Malaysia today that it was changing its financial year-end to June 30, 2021, from Dec 31, 2020. AirAsia X said the outcome would not be known by this month so the basis of preparation of its audited financial statements and audit opinion (AFS) was uncertain and the AFS would be of limited value to shareholders.
Malaysia Airlines’ parent company has sought financial aid from its sole shareholder, the nation’s sovereign wealth fund, as debt restructuring talks with creditors drag on, the company said on Saturday, Reuters reported. “Malaysia Aviation Group has requested financial support from our shareholder Khazanah Nasional although the company isn’t in a position to comment on amount at this point in time,” it said in an email to Reuters. The group said it remains in talks for a restructuring and that it was targeting a commercial agreement in the first week of December.
Shares in AirAsia fell as much as 8 per cent on Wednesday after the Malaysian budget carrier said it would review its investment in India, the strongest signal yet it is reassessing its south Asia business, the Financial Times reported. The statement on Tuesday night came hours after AirAsia’s Japanese unit filed for bankruptcy in the Tokyo District Court, citing “insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic”.
Struggling flag carrier Malaysia Airlines’ previous attempt to turn itself round collided with low-cost local rival AirAsia Group’s rise. Now, both companies have run into the same turbulence, the Financial Times reported. Malaysia Airlines, which has yet to recover from two 2014 tragedies that made global headlines, faces a growing risk of being forced to halt flights unless it secures aid. But the state has frowned on the idea of another bailout. A group of creditors recently rejected a proposal by Malaysia Airlines to restructure its RM16bn ($3.85bn) in liabilities.