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AIRASIA X Bhd shareholders have agreed to a debt restructuring for the Malaysian low-cost carrier, the company said on Tuesday, allowing it to pursue a scheme seen as key to its survival.
Long-distance affiliated shareholders AirAsia Group Bhd approved all resolutions at the extraordinary general meeting of shareholders, including rights issue and share purchase for new investors to raise 500 million ringgit.
AirAsia X in October last year proposed restructuring its 64.15 billion ringgit (US$15.6 billion) debt to a principal amount of 200 million ringgit and the rest released. The airline said in a separate statement that the resolution was passed by at least a 99.8% margin, and marked an important milestone in restructuring progress.
“This approval has been obtained concurrently with final negotiations being held with creditors,” he said, adding that New York-based advisors Seabury Capital had been “in active and productive talks” with lessors and others.
A Malaysian court in February gave the airline permission to hold separate meetings with different creditor groups within six months to vote on its scheme. The meeting is scheduled for late July or August, AirAsia X said. In March, the court also gave AirAsia X a three-month injunction against any proceedings that might be brought against it, which could slow the restructuring.
Aircraft maker Airbus last year joined more than a dozen creditors in rejecting a debt restructuring plan, telling the court it would lose more than $5 billion in orders if the proposal passed.
Other opponents include lessor BOC Aviation, which is calling for a debt-to-equity swap. Airbus said it could not comment on the airline’s ongoing restructuring plans, while BOC Aviation said it had no comment on individual customers.
AirAsia X in February proposed a separate restructuring program for its aircraft lessors aimed at addressing their concerns about future commercial agreements and the airline’s business viability after the recapitalization. (US$1 equals 4,240 ringgit). [antaranews/photo special]
