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KUALA LUMPUR • Low-cost long-haul carrier AirAsia X has run out of money and needs to raise up to RM500 million (S $ 164 million) to restart the airline, Vice President Lim Kian Onn said in an interview published yesterday.
The Malaysian airline, the long-haul arm of AirAsia Group, said this month that it wanted to restructure RM63.5 billion of debt and cut its share capital by 90 percent to continue as a going concern.
“We have run out of money,” Lim told The Star newspaper.
“Obviously, banks will not finance the company without shareholders, both old and new, bringing in new shares. So a prerequisite is new capital.”
It said the airline had actual liabilities of RM2 billion, with the largest of RM63.5 billion including all lease payments for the next eight to 10 years, as well as its large order for Airbus aircraft and engine maintenance. contracted with Rolls-Royce Holdings. .
“If we find RM300 million in new shares, then the shareholders’ funds will be RM300 million when we restart the business, and if we can borrow RM200 million, we think we will have a good platform to start over.”
Lim said AirAsia X also needed to convince its lessors of its business plan, adding that an unidentified lessor had recently recovered one of the airline’s jets to convert it into a freighter.
The airline plans to liquidate its small Indonesian-based airline and has fully put its stake in Thai AirAsia X on its books, and the Thai airline is not part of the restructuring plan, Lim told the newspaper.
Rival Malaysia Airlines is also in financial trouble, but Lim said there would be “no good result” if it seeks to merge two airlines in dire straits.
AirAsia X declined to comment beyond the details published in the newspaper article.
REUTERS
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