Malaysia’s AirAsia X withdraws challenge to pay lessor $23mn
AirAsia X (D7, Kuala Lumpur Int’l) and wholly-owned subsidiary AAX Leasing Two withdrew, on January 20, a request to challenge the registration in Malaysia of a UK court ruling forcing the airline to pay lessor BOC Aviation USD23.38 million plus interest and court fees.
The case had been due to appear before Malaysia’s High Court last summer to consider a hearing date for the indebted airline’s application to set aside the UK ruling, but this was deferred due to the court granting AirAsia X an extension of a restraining order on 15 of its creditors, including BOC Aviation, to assist the carrier with its prolonged bout of restructuring.
In November 2020, AirAsia X lost two court cases brought against it at the High Court of Justice in London, by Singapore-based BOC and by ILFC, now part of AerCap. The dispute concerned leasing debts for four and two aircraft, respectively. According to the ch-aviation fleets advanced module, BOC Aviation currently leases three A330-300s to AirAsia X.
The London court had ordered the carrier and its AAX Leasing Two unit to pay the above sum to BOC, which included the original USD22.97 million claim and interest, post-judgement interest, and GBP75,000 pounds (USD102,000) costs in filing the claim.
However, AirAsia X later sought court approval to convene meetings with creditors to vote on its radical debt restructure, which it eventually obtained in December 2021.
The airline’s latest move, to withdraw its request to block the transfer of the ruling in London to Kuala Lumpur, was recorded at Malaysia’s High Court, The Edge Markets reported citing court documents.
AirAsia X explained in a comment: “The application was withdrawn as the entirety of the judgement debt has been fully subsumed in AirAsia X’s debt restructuring scheme, which received the sanction of the Court on December 16, 2021, the terms of which would take effect upon lodgement of the sanction order with the Companies Commission of Malaysia. In this connection, BOC Aviation Limited voted in favour of the AirAsia X debt restructuring scheme.”