Malaysian company AirAsia X targets creditors meetings in late October as talks progress
Malaysia AirAsia X Bhd (AAX) has made “ progress” month talks with creditorit’s like that Goals convene meetings with them to vote on a restructuring plan by the to finish of October, its chief executive said.
Benyamin Ismail told Reuters in a telephone interview that negotiations with lessors, aircraft manufacturer Airbus SE and service providers had progressed, but declined to share details.
The airline, a subsidiary of AirAsia Group, also hopes to finish talks to potential investors for its recapitalization by the to finish of the year.
âWe plan to raise funds in December and complete this as soon as possible,â said Benyamin, declining to reveal details of potential investors.
Benyamin said talks with creditorThey were in the final stages and everyone had indicated that they wanted the airline to restructure.
There was no objection to a proposal to place engine manufacturer Rolls-Royce Group in the same classification as most others. creditorshe added.
The airline said in a stock exchange document that “final negotiations are still ongoing, especially with regard to upcoming trade deals.”
In a court document filed on Monday, the AAX said negotiations were still ongoing but “various letters of commitment have been obtained” from creditors.
Many donors have already made other deals with airlines in Southeast Asia to resume planes earlier or cut fares, at least temporarily, to help them survive the drop in air travel caused by the pandemic.
âDraft blocking agreements and termsheets were sent to donors on May 18th. Donors are currently reviewing them, âsaid AAX.
The airline told the court it received signed letters of engagement from big three creditors support and vote for the program, namely Honeywell International, Bridgestone Aircraft Tire Company and Sky High I Leasing Company.
AAX offered last October to restructure 64.15 billion ringgit ($ 15.43 billion) of debt, provoking objections from more than a dozen creditors, many of which are donors.
Airbus, the largest airline creditor, filed an affidavit in December claiming he stands to lose more than $ 5 billion in orders if the scheme comes to fruition. He declined to comment on the restructuring process.
This week, the court granted AAX an extension to hold its creditors meetings by March of next year, when a restraining order preventing creditors the filing of new lawsuits against the airline expires.
Shukor Yusof, Director of Malaysia-based Aviation Consulting Firm To finishat Analytics, said AXA’s low-cost long-haul model was no longer viable due to the pandemic.
“Creditors, including the lessors and Airbus, naturally do not want to see the airline down as they stand to lose a lot. The decision to work with AirAsia X to restructure is to get back all they can, âhe said.