Malaysia’s now-defunct 1MDB state fund is suing units of Deutsche Bank, J.P. Morgan and Coutts & Co. to recover billions in alleged losses from a corruption scandal at the fund, court documents seen by Reuters showed. 1MDB is claiming $1.11 billion from Deutsche Bank (Malaysia) Bhd, $800 million from J.P. Morgan (Switzerland) Ltd and $1.03 billion from a Swiss-based Coutts unit, and interest payments from all of them, according to the lawsuit.
Read more
Malaysia
Malaysia's scandal-plagued former prime minister Najib Razak is facing bankruptcy for allegedly failing to pay more than $400 million in taxes, which could bring his political career to an end, Agence-France Presse reported. Najib lost power in 2018 when his party, which had governed the Southeast Asian nation for six decades, was defeated at the polls after he became embroiled in a financial scandal.
Read more
Malaysia’s high court on Wednesday granted a restraining order for three months on 15 of AirAsia X Bhd.’s creditors over the debt recast talks for the airline, Bloomberg News reported. The order, applied for by AirAsia X to address its obligations in a timely manner, gives the creditors an opportunity for amicable discussions without “extraneous considerations,” according to an exchange filing.
Read more
Malaysian long-haul budget airline AirAsia X Bhd has proposed a separate restructuring programme for its aircraft lessors that aims to tackle their concerns, citing chance to recover rental losses, a document seen by Reuters shows. The airline, an affiliate of AirAsia Group, has for months been trying to reconstitute 64.15 billion ringgit ($15.89 billion) of debt into 200 million ringgit of debt. More than a dozen creditors, mostly lessors, had intervened in court to challenge a proposal that would have meant a haircut for them of 99.7%.
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.