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Friday, April 23, 2021

AirAsia X Will Revise $15.3 Billion Debt Reform Plan

Malaysia’s AirAsia X Bhd is planning to revise its $15.3 billion debt restructuring plan in order to address concerns raised by a creditor as the company’s cash is running out fast.

Malaysia’s AirAsia X Bhd is planning to revise its $15.3 billion debt restructuring plan in order to address concerns raised by a creditor as the company’s cash is running out fast.

According to a Bloomberg Thursday report, people familiar with the matter said that the budget carrier is currently seeking to reconstitute the $15.3 billion of unsecured debt into a principal amount of $48 million and have the test waived. However, the media outlet said that Malaysia Airports Holdings filed a lawsuit on Monday to claim $20 million owed by AirAsia X and a separate application to be excluded from the restructuring scheme, claiming that the debts were secured.

The Bloomberg report also said that according to another source, AirAsia X has less than six months of cash left and has been looking to convene a meeting of creditors to vote on the scheme. 

“It needs to move on and have that meeting as soon as possible. Fundraising is expected to take a couple of months at least so it’s imperative for the company to complete restructuring by January or February,” the person said.

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