AirAsia X proposes to restructure $15.3bn debt

AirAsia X (D7, Kuala Lumpur Int’l) has proposed to its creditors to restructure MYR63.5 billion ringgits (USD15.3 billion) of liabilities through a reconstitution into an acknowledgement of indebtedness for a principal amount of up to MYR200 million (USD48.2 million). The Malaysian long-haul low-cost carrier proposed in a stock market filing that any outstanding amounts above the reconstituted value and all sums, such as interest, incurred after June 30, 2020, be waived. The carrier said that the scheme would enter into force if it is approved by at least 75% of participating creditors present during a forthcoming court-mandated meeting. A source told The Edge Malaysia business daily that around 70% of the debt under the restructuring proposal is owed to Airbus. AirAsia X also reportedly owes approximately MYR6 billion (USD1.5 billion) to lessors. According to the ch-aviation fleets advanced module, AirAsia X operates twenty-four A330-300s. It said it hoped to retain its fleet size of around 25 units in the future, although the aircraft would be used on a “rotational basis” in the near term. The airline has firm orders from Airbus for thirty A321-200Ns, seventy-eight A330-900s, and ten A350-900s. The airline simultaneously proposed to consolidate its shares and reduce 90% of its issued share capital through consolidation of every ten shares into one share. This would translate into the reduction of the issued share capital from MYR1.53 billion (USD370 million) to MYR0.15 billion (USD3.6 million). “The credit arising from the Proposed Share Capital Reduction of MYR1.38 billion will be used to offset the accumulated losses of the Company,” the airline said