AirAsia X Looking to Raise RM500 Million

(31 Oct 2021) 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 existing shareholders.

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 restructuring scheme.

"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.

See latest Travel Industry News, Video Interviews, Podcasts and other news regarding: COVID19, AirAsia, AirAsia X.