The proposed restructuring of AirAsia X Bhd (AAX) sparked buying interest in the shares of the long-haul airline in a trading session earlier today.
Bernama reported that at 10.30am, AAX shares rose 1.5 sen to 9.5 sen with a total of 263.27 million shares changing hands, overcoming Mobilia Holdings Bhd's first appearance as the most active counter in early trading.
In fact, news of AAX's latest developments also prompted the shares of its affiliate, AirAsia Group Bhd which rose 10 sen to 91.5 sen with 134.81 million shares traded.
AirAsia Group also emerged as the eighth most active counter in trading as of 10.30am today.
According to a Reuters report, AAX has proposed a separate restructuring program to the lessee in an effort to address their concerns.
According to Reuters, the proposal is aimed at easing the lessee's concerns about commercial agreements as well as future viability aspects of the airline's business.
"Under the revised proposal, AAX stated that the lessee is expected to recover at least 60% of the total debt," Reuters explained.
The proposal is also seen as an important step to enable the company to get the approval of the creditors for the restructuring effort.
Reuters reports that AAX has been working for months to restructure a total of RM64.15 billion into a debt of RM200 million.
"More than 12 creditors, most of whom are lessees, have gone to court to challenge proposals that could cause them to suffer a 99.7% reduction," Reuters said.
