First group of creditors backs Malaysia’s AirAsia X restructuring plan

REUTERS/Beawiharta

Malaysian long-haul low-cost airline AirAsia X (AAX) said on Friday that 100% of the first of three groups of creditors had agreed to a restructuring scheme that proposes to pay just 0.5% of debt owed and to terminate all existing contracts.

The three different classes of creditors, which include Airbus SE, BOC Aviation Ltd and Rolls-Royce Holdings PLC, have all voted in favour of the plan, Bloomberg News reported, citing a person familiar with the matter.

An AirAsia X spokesperson declined to comment on the Bloomberg report, saying voting was ongoing.

AAX last month said the airline faced liquidation if creditors did not agree to the restructuring of 33.65 billion ringgit ($8.1 billion) of liabilities.

It is one of many carriers in the Asia-Pacific region to have entered a court-overseen debt restructuring process to survive the pandemic. Others include Malaysia Airlines, Virgin Australia, Thai Airways and Philippine Airlines.

AAX needs 75% of each of the three classes of creditors to approve the plan for it to proceed.

The first class of AAX creditors includes airports, financial institutions and maintenance providers, according to a 127-page explanatory statement for the creditors meeting seen by Reuters.

The second class includes engine suppliers, lessors, trade creditors, travel agents and passengers, the document said, while Airbus, the largest creditor, is the only one in the third class.

Half of the airline’s total liability is the cost of terminating airplane orders from Airbus for 78 A330neo widebodies and 30 A321neo narrowbodies, the document said.

AAX also said it is in negotiations with lessors of 29 planes and certain other creditors on commercial terms for continued or future business relationships.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.