[ad_1]
KUALA LUMPUR (Oct 7): AirAsia X Bhd (AAX) share price fell in Bursa Malaysia morning trading today after the low-cost carrier said yesterday that it is carrying out a corporate and debt restructuring across the group to avoid liquidation as the company deals with the impact of the Covid-19 pandemic.
At 9.08am today, AAX’s stock price was half a sen or 10% lower at 4.5 sen.
The stock was the most active so far in Bursa today, with some 19 million shares traded. At 4.5 sen, it had a market value of about RM187 million.
Yesterday, AAX said in a Bursa statement that the company, which has proposed a restructuring of approximately RM63.5 billion in debt, also plans a 90% reduction in the firm’s issued share capital and the consolidation of every 10 shares. AAX existing in a stock. .
“Globally, the commercial airline industry continues to face uncertainty as a result of the unprecedented Covid-19 pandemic.
“To avoid a liquidation and allow the airline to fly again, the only option is for AirAsia X to undertake a corporate and debt restructuring of the entire group, and update its business model to survive and prosper in the long term.
“The correct size of the group’s level of operations and its financial obligations are prerequisites for raising any fresh capital, including both equity and debt, to be used to support the implementation of the group’s revised business plan,” AAX said.
Today, MIDF Amanah Investment Bank Bhd analysts wrote in a note that what is left now is for AAX’s creditors to make a strong decision on whether to accept or reject the airline’s proposals.
Analysts said AAX’s share price had declined significantly. As such, MIDF updated its AAX stock recommendation to “neutral” from “commercial sale” previously, “on the premise of possible acceptance by lenders,” analysts said.
They said MIDF, however, kept its price target (TP) for AAX at five sen.
Meanwhile, at Public Investment Bank Bhd, analyst Nur Farah Syifaa ‘Mohamad Fu’ad wrote today in a note that, pending further developments in AAX debt and corporate restructuring, the research house made no changes to your current forecasts for the airline.
“Our ‘underperforming’ call for AirAsia X remains unchanged TP of one sen,” said Nur Farah Syifaa.
[ad_2]
