AIRASIA X has today lodged the Sanction Order for its debt restructuring with the Registrar of Companies with the formalities of its restructuring exercise now completed.
The debt restructuring proposal was approved by its creditors on Nov 12, 2021 and by the High Court of Malaya on Dec 16 the same year.
The lodgement of the Sanction Order means that the financial effects can be recognised in the financial statements of the company and as a result, AirAsia X will be able to reverse RM33 bil of liabilities and provisions for liabilities which have been waived under the scheme.
The full effects on the income statement and balance sheet of the company will be reflected in the next quarterly Bursa Announcement.
The lodgement of the Sanction Order will now pave the way for completion of its proposed fund raising.
“This is another significant step to rebuild AiAsia X post pandemic. We are returning to the skies in a robust position where we can once again offer the best value fares and customer service excellence which our customers deserve,” commented the long-haul budget carrier’s CEO Benyamin Ismail.
“Cargo has been a strong lifeline for AAX and our recovery is already underway as a combination carrier with equal emphasis on cargo and passenger revenues.”
According to Benyamin, AirAsia X looks forward to offering more value-for-money services across its core network in tandem with cargo and consumer demand.
“In the next two months we will re-commence passenger services to several more international destinations in line with borders reopening with exciting offerings for guests and particularly to our customers that have travel credits with us,” he added.
At the close of today’s mid-day trading session, AirAsia X was unchanged at 54.5 sen with 112,200 shares traded, thus valuing the company at RM226 mil. – March 16, 2022
Main photo credit: Channel News Asia
