[ad_1]
KUALA LUMPUR: AirAsia X Bhd
(AAX) plans to raise RM500 thousand by issuing rights to existing shareholders and allocating new shares to new investors.
The gross proceeds that will be raised will be used to fund its working capital for the next 24 months, the long-haul low-cost carrier said in a presentation to Bursa Malaysia today.
The fundraiser will take place after the completion of a proposed RM63.5bil debt restructuring scheme in October to allow AAX to continue as a going concern, for which the airline is seeking approval from its creditors.
AAX said it aims to collect up to RM300 thousand from the exercise of the rights issue. The rights shares will be provisionally assigned to authorized shareholders who may totally or partially renounce their rights.
“AAX intends to raise a minimum of RM100 thousand from the Proposed Rights Issue to meet the Group’s financing requirements,” he said.
Meanwhile, another RM200 thousand will be raised from a proposed share sale exercise.
Under the plan, a special purpose vehicle company formed by Datuk Lim Kian Onn (SPV) will subscribe up to RM200 million shares in AAX.
“The SPV will commit a minimum subscription of RM50 thousand,” he said.
The SPV will have the option to subscribe for an additional 15% of the expanded total number of AAX shares.
AAX said the anticipated gross income of RM500mil will be used for its working capital requirement that includes aircraft activation costs, payment of business and other accounts payable, salaries and other personnel-related costs, as well as other operating expenses. incurred in the day-to-day of the Group. operations.
“The exact breakdown of income to be used for each component of working capital cannot be determined at this time, as it depends on the terms of the new contracts, agreements and / or arrangements with the relevant parties to be agreed.” said.
AAX said today that it is now looking to further reduce its share capital by 99.9%, reducing the issued share capital to RM1.53 thousand. He previously proposed a 90% reduction.
The credit derived from the proposed capital reduction will be used to offset part of its accumulated losses, he said.
“Shareholder funds after the capital reduction remains negative, but the consolidation of the shares after the capital reduction will provide a platform to seek new funds from existing shareholders,” the airline said in a statement.
Several creditors have intervened in the restructuring proceedings and the airline said it will continue to interact with them to allay their concerns.
“The debt restructuring scheme is a prerequisite for the recapitalization of the Company … and a complete reset of the airline is required to provide a platform to rebuild and an attractive enough vehicle for investors to invest,” he said .
The alternative to the scheme is a liquidation of the airline with no return to creditors, he said.
[ad_2]
