Yahooo, ‘Green Light’ is here!
AirAsia X's (AAX) debt restructuring plan worth RM33.65 billion will only be implemented after receiving permission from the court.
AirAsia X was granted leave by Judicial Commissioner Ong Chee Kwan in the High Court on Thursday, December 16 after hearing arguments on Tuesday.
AAX has applied for such permission under Section 366 of the Companies Act 2016.
In the Bursa filing, AAX stated they proposed restructuring their debt after submitting an order with the Registrar of Companies Malaysia.
Earlier, AAX had held a meeting on November 12 with its scheme’s creditors to vote on the restructuring plan which received 99% support from voting creditors.
Last October, the company proposed to re -enter RM63.5 billion of its debt as an acknowledgment of indebtedness for the principal amount of up to RM200 million by reducing 99.9% of its issued share capital as well as a proposed consolidation of every 10 existing shares in AAX into 1 share.
The RM63.5 billion figure will be reduced to RM33.65 billion after evidence of debt execution conducted by AAX determines and finalizes the list of scheme creditors and the total value of their schemes.
Following the debt restructuring, AAX also proposed the issuance of new deductible shares to raise gross revenue of up to RM300 million from existing shareholders and the issuance of new AAX share allocations to raise another RM200 million.
