Malaysia

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.

Malaysia Airports Holdings Bhd (MAHB) says its filing of a RM78mil lawsuit against AirAsia X (AAX) will not derail the latter’s debt restructuring scheme. “Malaysia Airports is pursuing its legal rights to recover the debt from AAX which is critical for the upkeep and maintenance of the airports, ” it said, The Star reported.

Bad news for AirAsia X customers as they cannot claim any refunds or credits from the airline as it undergoes a restructuring process after being hit hard by the pandemic, The Rakyat Post reported. According to the AirAsia X support site, the airline has submitted an application for a debt restructuring to the High Court of Kuala Lumpur and customers have been listed as scheme creditors as part of that process. Additionally, credit account applications, flight changes and Unlimited Pass holders are also affected.