Business & Investment

AirAsia X shows court creditors support for Reuters restructuring program

© Reuters.

Liz Lee

Kuala Lumpur (Reuters)-Most of AirAsia X Bhd (AAX) lenders support the restructuring program, and Malaysia Airlines has attracted potential investors’ interest in post-restructuring financing, filed this month. The court document was shown.

In an email attached to a court filing, supportive lenders want to continue discussions with low-cost carriers and potential new investors for more equitable terms and new commercial arrangements. Said.

The affidavit was submitted by more than 12 creditors to intervene in the proposed court-supervised restructuring, and lender BOC Aviation Ltd and airport operator Malaysia Airports Holdings Bhd said AAX ” Desperately bankrupt. “

Planemaker Airbus SE (OTC :) also filed a lawsuit last month saying it could lose more than $ 5 billion in aircraft orders if low-cost long-haul airlines proceed with their plans.

AAX’s senior lawyer, Hereen Ee, said in a court document seen by Reuters that 15 out of 20 aircraft lenders did not agree with AAX’s liquidation and three other interveners (Airbus, Rolls-Royce (OTC)). :) Group and BNP Paribas (OTC)) :)-“Did not oppose” the restructuring plan.

According to the document, lenders in favor of restructuring include Macquarie Aircraft Leasing Services and Aircastle. Rolls-Royce, Macquarie Aircraft Leasing Services, and Aircastle did not immediately respond to requests for comment.

An Airbus spokesman declined to comment, saying the company is continuing discussions but the details are confidential. AirAsia X also declined to comment.

BNP Paribas, a trustee who acts under the direction of creditors, declined to comment.

Nigel Harwood, executive vice president of Aircastle Asia Pacific, told AAX by email that his company was not seeking liquidation of the airline, according to court filings.

“Once you understand your future business plan with a new investor referral, we look forward to working with you to reach a revised commercial arrangement,” he said.

McColley’s email supports and restructures recapitalized AAX, provided the airline has a detailed business plan, a trusted third-party investor, and the lender has a meaningful voice. He said he was ready to sign a lease agreement.

According to the affidavit, AAX said it had received 10 letters from Malaysian and Singaporean companies and high net worth individuals indicating their interest in participating in the proposed financing activities.

10 includes Tune Group Sdn Bhd, owned by AirAsia Group Bhd co-founders Tony Fernandes and Kamarudin Meranun. Tune is AAX’s largest shareholder and holds a 17.83% stake.

AAX also said it was attracting interest from listed financial groups and subsidiaries of other subsidiaries, both of which wanted to be unnamed.

AAX, an affiliate of AirAsia Group, said last month that it plans to raise up to RM200 million ($ 49.49 million) by issuing shares to new investors after the debt restructuring.

The airline is trying to rebuild its debt of RM64.15 billion. If you do not consider contingent liabilities such as large aircraft purchase orders with Airbus, your outstanding debt will be RM2.24 billion.

Some lenders argue that Airbus orders should be excluded. However, AAX said contingent liabilities need to be dealt with and will be reduced by renegotiated leases and other commercial contracts.

AAX estimates that lenders who continue after airline restructuring will be able to recover approximately 44-66% of their lease loss under the new contract.

($ 1 = 4.0410 ringgit)

AirAsia X shows court creditors support for Reuters restructuring program AirAsia X shows court creditors support for Reuters restructuring program

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