AirAsia X get extension until March 17 to hold creditor meeting

The High Court granted an extension to AirAsia X Bhd (AAX) to hold its creditor meeting, which was supposed to be held by the latest this month, to March 2022.

“On behalf of the Board of Directors of AAX, Mercury Securities wishes to announce that further to the announcement dated 22 February 2021, the High Court of Malaya at Kuala Lumpur had on 15 September 2021 granted an order for, amongst others, an extension of time until 17 March 2022 for AAX to convene separate meetings of the creditors pursuant to Section 366(1) of the Companies Act, 2016.

“It’s for the purpose of considering and, if thought fit, approving with or without modification the Proposed Debt Restructuring to be proposed by AAX to the creditors,” the group said in a filing to Bursa Malaysia today.

The High Court in Kuala Lumpur in February 2021, ordered AAX to convene meetings with creditors within 180 days, or six months, to get its restructuring plan to be considered and approved.

The court also separated 14 creditors into three classes, the first being Malaysia Airports Holdings Bhd (MAHB), the second comprising other creditors, while the third is Airbus SE.

AAX’s initial proposal was to restructure over RM60 billion of debts into an “acknowledgement of indebtedness” for up to RM200 million across a single class of unsecured creditors.

AAX posted its largest quarterly net loss of RM5.67 billion for the quarter ended March 31, 2021 as revenue fell by 29.6% quarter-on-quarter to RM38.49 million as the majority of its aircraft fleet remained grounded since mid-April last year on Covid-19 pandemic.

The group also asked for a time extension to issue its quarterly results for the financial period ended June 30, 2021. –TMR