Salem Radio Network News Sunday, December 5, 2021

Business

AirAsia X restructuring plan backed by first group of creditors

KUALA LUMPUR (Reuters) – Malaysian long-haul low-cost airline AirAsia X (AAX) said on Friday that 100% of the first of three groups of creditors had agreed to a restructuring scheme that proposes to pay just 0.5% of debt owed and to terminate all existing contracts.

The three different classes of creditors, which include Airbus SE, BOC Aviation Ltd and Rolls-Royce Holdings PLC, have all voted in favour of the plan, Bloomberg News reported, citing a person familiar with the matter.

An AirAsia X spokesperson declined to comment on the Bloomberg report, saying voting was ongoing.

AAX last month said the airline faced liquidation if creditors did not agree to the restructuring of 33.65 billion ringgit ($8.1 billion) of liabilities.

The first class of creditors includes airports, financial insitutions and maintenance providers, according to a 127-page explanatory statement for the creditors meeting seen by Reuters.

($1 = 4.1665 ringgit)

(Reporting by Liz Lee in Kuala Lumpur and Jamie Freed in Sydney; Editing by Jacqueline Wong)

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