PETALING JAYA: AirAsia X Bhd intends to revise its share capital reduction to 99.9% from the 90% proposed earlier, which will comprise a reduction of the issued share capital of RM1.53 billion to RM1.53 million.
The proposed share consolidation which will be undertaken following the proposed share capital reduction will remain unchanged, that is, a consolidation of every 10 existing AirAsia X shares into one AirAsia X share.
“The credit arising from the proposed share capital reduction will be used to offset part of the accumulated losses. Shareholders’ funds after the capital reduction remain negative but the consolidation of shares post-capital reduction will provide a platform to seek fresh funding from existing shareholders,” the group said.
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.
However, prior to the fundraising, 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. AirAsia X wishes to reiterate 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,” it said.
AirAsia X added that it will continue to engage with creditors over the next few weeks and hopes to further allay their concerns. It noted that the alternative to the scheme is a liquidation of the airline without any returns to creditors.
“Post-Covid-19, a reset with fresh equity and a repositioning of the airline as a regional medium-haul low-cost carrier will provide the best economic returns to creditors in a continued business relationship. The company has received some indications of interest for investment in a restructured AirAsia X and will similarly continue to engage with these potential investors,” it said.
