KUALA LUMPUR, Oct 6 (Reuters) - The long-haul arm of Malaysia's flagship finances airline, AirAsia
KUALA LUMPUR, Oct 6 (Reuters) – The long-haul arm of Malaysia’s flagship finances airline, AirAsia X Bhd (AAX) AIRX.KL, has proposed restructuring its debt and decreasing its issued share capital to keep away from liquidation, it mentioned in a late bourse submitting on Tuesday.
The group is searching for to restructure roughly 63.5 billion ringgit ($15.30 billion) of debt and for any stability to be waived, the assertion mentioned.
The group, arduous hit by the coronavirus pandemic as closed borders stored most of its planes grounded for months, additionally proposed decreasing its issued share capital by 90% and consolidating each 10 current abnormal shares into one share.
AAX mentioned it’s going through extreme liquidity constraints in assembly its debt and different monetary commitments regardless of efforts to regulate prices, together with grounding all scheduled flights, wage cuts and retrenchment throughout the group.
“Primarily based on its present monetary place and the trade outlook, the Group won’t be able to satisfy its quick debt and different monetary commitments,” it mentioned.
“To keep away from a liquidation and to permit the airline to fly once more, the one possibility is for AAX to undertake a group-wide debt and company restructuring and replace its enterprise mannequin to outlive and thrive in the long run,” it added.
AAX mentioned that the right-sizing the group’s operations and its monetary obligations are pre-requisites for the elevating of any recent capital, comprising each fairness and debt, to help the group’s revised marketing strategy.
($1 = 4.1510 ringgit)
(Reporting by Liz Lee; Modifying by Kirsten Donovan)
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