Malaysia's AirAsia X revises debt restructuring plan to address creditor concerns

KUALA LUMPUR: Malaysia's AirAsia X Bhd on Wednesday said it has revised its $15.3 billion debt restructuring plan to re-categorise its creditors in a bid to address concerns raised by a creditor.

The budget carrier is seeking to reconstitute the $15.3 billion of unsecured debt into a principal amount of 200 million ringgit ($48 million) and have the rest waived.

But creditor Malaysia Airports Holdings Bhd (MAHB) filed a lawsuit last month to claim 78 million ringgit owed by AirAsia X and a separate application to be excluded from the restructuring scheme, arguing that its debts were secured.

Citing sources, Reuters had reported last week about AirAsia X's plans to revise the restructuring to address demands by MAHB. One source said MAHB's legal action could delay the airline's debt restructuring plan and bid to stave off liquidation.

In a statement on Wednesday, AirAsia X said it will now categorise creditors as essential and non-essential, and that the airport operator MAHB would be included in the first category.

"The revision is made in the interest of time, without prejudice to AAX's rights to defend and seek the appropriate remedies... and in order for the court convened meetings to be held as soon as possible for the creditors to consider and vote on the proposed debt restructuring," the company said.

The airline's restructuring proposal needs approval from creditors holding at least 75% of the total value of the debt.

It has been hard hit by the coronavirus pandemic as travel restrictions have grounded most of its planes.