AirAsia X Completes Debt Restructuring

(17 Mar 2022, 12:27 +07)  With restructuring formalities now complete, AirAsia X (AAX) lodged a Sanction Order for its debt restructuring with the Registrar of Companies in Malaysia on Wednesday.

The debt restructuring proposal was approved by its creditors on 12 November 2021 and by the High Court of Malaya on 16 December 2021.

Lodging the Sanction Order means that the financial effects can be recognised in the financial statements of the company and, as a result, AAX will be able to reverse RM33 billion of liabilities and provisions for liabilities which have been waived under the scheme.

Wing tip of an AirAsia X A330. Picture by Steven Howard of TravelNewsAsia.com

The full effects on the income statement and balance sheet of the company will be reflected in the next quarterly stock exchange announcement.

Benyamin Ismail, AirAsia X CEO, said, “This is another significant step in rebuilding AAX, post pandemic. We are returning to the skies in a robust position where we can once again offer the best value fares and customer service excellence which our customers deserve.

“Cargo has been a strong lifeline for AAX and our recovery is already underway as a combination carrier with equal emphasis on cargo and passenger revenues.

“We look forward to offering more value for money services across our core network in tandem with cargo and consumer demand. In the next two months we will recommence passenger services to several more international destinations in line with borders reopening with exciting offerings for guests and particularly to our customers that have travel credits with us.”