(15 Dec 2020)
AirAsia X Berhad has unveiled plans to revise the
proposed reduction of 90% of the issued share capital to 99.9% of
the issued share capital.
This comprises a reduction of the issued share
capital of approximately RM1,532.51 million to RM1.53 million.
The credit arising from the proposed share capital
reduction will be used to offset part of the accumulated losses.
The proposed share consolidation which shall be
undertaken following the proposed share capital reduction shall
remain unchanged, i.e. a consolidation of every 10 existing
AirAsia X shares into 1 AirAsia X share.
Shareholders funds after the capital reduction
remains negative but the consolidation of shares post-capital
reduction will provide a platform to seek fresh funding from
For its fundraising, AirAsia X proposes to raise
up to RM500 million comprising both a rights issue of up to RM300
million from existing shareholders and a share subscription of
shares of up to RM200 million from new investors.
Prior to the fundraising however, AirAsia X must
first secure the approval of its creditors for the debt
“Several lessors have intervened in the
restructuring proceedings to register their objections to the
scheme,” said the airline. “AirAsia X has reiterated that the debt restructuring
scheme is a prerequisite for the recapitalisation of the company
by both existing and new investors and a comprehensive reset of
the airline is required to provide a platform to rebuild and a
vehicle attractive enough for investors to invest in.”
The company says that an alternative to the scheme
is a liquidation of the airline without any returns to creditors.
On 8 December 2020, shares in AirAsia X Berhad
were 0.0070 MYR and on Tuesday, 15 December they were 0.095 MYR
down from 0.11 on Monday. On 20 December 2019 the shares were
trading for 0.15 MYR.
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