Malaysian company AirAsia X gets green light to restructure debt

The High Court of Malaysia, which oversaw the restructuring process of AirAsia X (D7, Kuala Lumpur Int’l), on December 16 approved the debt restructuring program of the low-cost long-haul carrier, announced the airline in Bursa Malaysia action. exchange deposit.

Under the scheme, which creditors have approved in back-to-back meetings on November 12, AirAsia X will only pay 0.5% of the 33.65 billion MYR ($ 8 billion) in debt it owes. The plan also terminates all existing contracts.

“On behalf of the Board of Directors of AAX, [stockbroking firm] Mercury Securities wishes to announce that AAX has filed an application with the High Court of Malaysia under section 366 of the Companies Act 2016, for the approval and / or sanction of the debt restructuring plan, and that the High Court of Malaysia has, at a hearing today, granted such an order, ”the brief disclosure said.

The debt restructuring will take effect, he added, as soon as the court order is filed with the Malaysian Companies Registrar. AirAsia X will then undertake a recapitalization, which it expects to complete in the first quarter of 2022.

AirAsia X first proposed a sweeping debt restructuring in October 2020. The original figure of MYR 63.5 billion (US $ 15 billion) was reduced to MYR 33.65 billion after a proving exercise debt conducted by the airline to determine the list of creditors to be included in the plan. She had to face 15 creditors, including lessors, who begged the courts to reject the plan. A year later, in October 2021, he formally asked creditors to meet on November 12 to review the proposal, telling them the alternative was liquidation.

Half of the amount was owed to Airbus in the form of termination fees from the manufacturer’s orders. The other creditors are:

• BOC Aviation;
• Malaysia Airports;
• Macquarie AirFinance;
• Sky High leasing;
• ILFC;
• KDAC Aircraft Holding 4;
• Jerdons Baza Leasing 1048 Designated activity;
• Jerdons Baza Leasing 1066 Designated activity;
• Jerdons Baza Leasing 1075 Designated activity;
• Lavender Leasing One;
• Lavender Leasing Two;
• BNP Paribas;
• AWAS 1533; and
• AWAS 1549.