AIRASIA Group Bhd (AAGB) will not be classified as a financially distressed company due to Bursa Malaysia’s relief measures in lieu of the Covid-19 pandemic.
AAGB will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to the Main Market Listing Requirements for a period of 12 months from the date of this announcement, the group said in a statement today.
“AAGB will re-assess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main LR upon the expiry of the 12 months from the date of this announcement,” the low-cost carrier added.
AAGB will resume trading of its shares today at 2.30pm.
Earlier, the group’s shares were suspended pending an announcement after its auditor Ernst & Young PLT noted in a statement filed with Bursa yesterday that the airline had posted a net loss of RM283 mil for the financial year ended Dec 31, 2019, and its liabilities had exceeded assets by RM1.84 bil.
“Further, in early 2020, the global economy, in particular the commercial airlines industry, faces uncertainty as a result of the unprecedented Covid-19 pandemic. The travel and border restrictions implemented by countries around the world has led to a significant fall in demand for air travel which impacted the Group’s financial performance and cash flows,” E&Y said.
These events or conditions, along with other matters as set forth in the financial statements, E&Y said, “indicate the existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern.”
Bursa had, via its letter dated April 16, 2020, granted affected listed issuers relief from complying with the obligations under Paragraph 8.04 and PN17 of the Main LR (“PN17 Relief Measures”) from 17 April 2020 to 30 June 2021 (“Relief Period”). The PN17 Relief Measures will be available to the listed issuer if it triggers any one of the following criteria under PN17 of the Main LR (“Suspended Criteria”):-
- its shareholders’ equity on a consolidated basis is 25% or less of its share capital (excluding treasury shares) and such shareholders’ equity is less than RM40 mil;
- the auditors have highlighted a MUGC or expressed a qualification on the listed issuer’s ability to continue as a going concern in its latest audited financial statement and its shareholders’ equity on a consolidated basis is 50% or less of its share capital (excluding treasury shares); and
- default in payment by the listed issuer, its major subsidiary or major associated company, as the case may be, as announced pursuant to paragraph 9.19A of the Main LR and the listed issuer is unable to provide a solvency declaration to the Exchange.
