Malaysia

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.

AIRASIA X Bhd (AAX), the low-cost long-haul affiliate of AirAsia Group Bhd, is expected to file an amendment to its originating summons next week, to make its debt restructuring proposal more palatable to the 1,200 unsecured creditors that the airline is asking to write down their dues, The Edge Markets reported. This was disclosed to Kuala Lumpur High Court Judicial Commissioner Anand Ponnudurai by the lawyer for AAX last Friday (Oct 30).

Malaysia's AirAsia X Bhd AIRX.KL on Wednesday said it has revised its $15.3 billion debt restructuring plan to re-categorise its creditors in a bid to address concerns raised by a creditor, Nasdaq reported. The budget carrier is seeking to reconstitute the $15.3 billion of unsecured debt into a principal amount of 200 million ringgit ($48 million) and have the rest waived.

Malaysian state oil firm Petroliam Nasional Berhad (Petronas) said late on Tuesday it had approved an additional 10 billion ringgit ($2.40 billion) dividend to the government to help fight the COVID-19 pandemic, Reuters reported. Earlier this week, the country’s economic minister had said Petronas would pay the government, its sole shareholder, 34 billion ringgit in dividends this year. The firm, which suffered its first loss in nearly five years during the second quarter, had initially pledged to pay 24 billion ringgit and said any additional funding would depend on its affordability.

AIRASIA X Bhd’s (AAX) plan to restructure RM63.49 billion worth of debt owed to its creditors has already hit a few hurdles, the Edge reported. The Edge has learnt that BOC Aviation Ltd — one of the 1,200 unsecured creditors that are being asked to write down their dues by AAX — has applied to intervene in the long-haul, low-cost carrier’s application for leave to hold a scheme creditors’ meeting to vote on the scheme.

Malaysia's AirAsia X Bhd plans to revise its $15.3 billion debt restructuring plan to address concerns raised by a creditor as its cash is running out fast, people with direct knowledge of the matter said, Reuters reported. The budget carrier is seeking to reconstitute the $15.3 billion of unsecured debt into a principal amount of 200 million ringgit ($48 million) and have the rest waived.

AirAsia X Bhd (AAX) said BOC Aviation Ltd has applied to intervene in the airline's application to the High Court in respect of its proposed RM63.49 billion debt restructuring scheme, confirming a report by The Edge. In a filing with the bourse, AAX said it is making the clarification in reference to an article by The Edge dated Oct 26 entitled "More hurdles loom over AirAsia X's debt restructuring plan,” The Edge reported.