AirAsia X (AAX) Malaysia has completed its debt restructuring and will post a profit of RM33 billion or US $ 7.86 billion in the next quarter.
Under the airline's restructuring plan, it will repay 0.5% of the debt borrowed, subsequently terminating existing contracts after obtaining a decision from creditors and the Malaysian High Court last year.
A company spokesperson informed that the settlement of the debt restructuring will lead to a proposed fundraiser of RM500 million.
For the record, the restructuring plan was made to avoid liquidation after the company recorded a quarterly loss during last September.
AAX is one of dozens of airlines in the Asia-Pacific region that have undertaken debt restructuring following the spread of Covid-19 to the detriment of airline operations.
According to AAX Chief Executive Officer (CEO), Benyamin Ismail, cargo services have been the main source of the company while recovery activities are underway with equal emphasis on cargo and passenger revenue.
He added that in the next 2 months, the company will start passenger services to international destinations when the border is fully opened.
