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KUALA LUMPUR: AirAsia X Bhd
plans to pull the country’s airport operator out of its US $ 15.3 billion (RM63.65 billion) debt restructuring plan to speed up discussions with creditors, as its cash is rapidly running out, people with direct knowledge of the matter.
The budget airline is trying to reconstitute the US $ 15.3 billion of unsecured debt into a principal amount of RM200 thousand ringgit and give up the rest.
But Malaysia Airports Holdings Bhd (MAHB) filed a lawsuit last week to claim RM78mil owed by AirAsia X and a separate request to be excluded from the restructuring scheme, arguing that its debts were secured.
A source, who was not authorized to speak publicly about the plans, said that legal action against the airline could delay its debt restructuring plan to avoid liquidation.
The source said that AirAsia X, the long-haul arm of AirAsia Group Bhd, has less than six months of cash left, and has been looking to call a meeting of creditors to vote on the scheme. “You need to go ahead and have that meeting ASAP,” the person said.
“Fundraising is expected to take at least a couple of months, so it is imperative that the company complete the restructuring in January or February.”
AirAsia X declined to comment.
Airport operator MAHB said on Sunday that its attempt to recover AirAsia X’s debt would not derail the airline’s plan. But the lawsuit follows a similar action taken by another creditor. Aircraft lessor BOC Aviation Ltd filed a lawsuit against AirAsia X and its subsidiary in August to claim US $ 23 million (RM95.7k) in debt and earlier this month requested to intervene in the airline’s court application for its plan.
Airport operator MAHB said on Sunday that its attempt to recover AirAsia X’s debt would not derail the airline’s plan.
The airline’s restructuring proposal needs the approval of creditors who own at least 75% of the total value of the debts, with the source saying that most of the figure is tied to future aircraft orders and grants Airbus SE almost 75% alone. “No creditor will want to make a decision if they don’t know what the outcome is with MAHB,” said another source, adding that MAHB might have the financial stamina for a legal battle, but AirAsia X does not.
Sources said the airline hoped there would be no other new legal action that could prevent the proposed meeting of creditors.
After the restructuring, the airline plans to raise up to RM500 thousand to restart the company, it said on Monday. – Reuters
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