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KUALA LUMPUR: Low-cost airline AirAsia X Bhd received a three-month restraining order from the High Court against any legal proceedings that could be initiated against it, which could have delayed its debt restructuring process.
“The restraining order allows creditors an opportunity for friendly deliberation on the proposed debt restructuring without extraneous considerations,” said a document on the exchange.
AirAsia X, the long-distance subsidiary of AirAsia Group Bhd, filed for a restraining order in December, which will serve to restrict any legal proceedings brought against it.
The airline has been trying for months to restructure RM64.15 billion of debt into RM200 million of debt.
More than a dozen creditors have come forward to intervene in his court-supervised restructuring proposal, with lessor BOC Aviation Ltd and airport operator Malaysia Airports Holdings Bhd arguing that AAX is “hopelessly insolvent.”
Last month, the court ordered the airline to convene separate meetings with its different groups of creditors within six months.
