AirAsia X to stave off liquidation with RM63.5 bil debt restructure

AirAsia Group has been hit hard by the Covid-19 pandemic as closed borders left most of its planes grounded for months.

Group-wide debt restructuring and renegotiation of financial obligations, as well as updating its business model, are pre-requisites to raising fresh equity and debt, which will be required to restart the airline, it said late on Tuesday.The group, hard hit by the Covid-19 pandemic as closed borders left most of its planes grounded for months, is seeking to reconstitute the RM63.5 billion debt into a principal amount of RM200 million and for the balance to be waived.

Reuters had reported on Friday that the national carrier’s holding firm Malaysia Aviation Group said told lessors it will likely be unable to make payments owed after November unless it receives more money from state fund Khazanah Nasional Bhd.

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