Capital A gets High Court confirmation for RM2.74bil capital reduction

This clears the way for the planned distribution of AirAsia X Bhd shares to eligible Capital A shareholders.

Capital A said its restructuring plans are progressing steadily. (AirAsia pic)

PETALING JAYA:

 The Kuala Lumpur High Court has confirmed Capital A Bhd’s proposed reduction of issued share capital by RM2.74 billion, clearing the way for the planned distribution of AirAsia X Bhd (AAX) shares to eligible Capital A shareholders.

In a statement today, the group said the move marked one of the last steps in its restructuring, after milestones achieved, including the lifting of conditions in agreements and the declaration of a dividend-in-specie entitlement, Bernama reported.

It said Capital A remains on track to complete the disposal of aviation and distribution businesses by December 2025. The end-phase actions of its restructuring are progressing steadily, it added.

With this approval, the next steps are to distribute AAX shares to Capital A shareholders, seek a High Court order for the capital reduction under the RM5.51 billion regularisation plan, and subsequently apply for the upliftment of its Practice Note 17 (PN17) status given to financially distressed companies, Capital A said.

Once complete, all AirAsia airlines will operate under a single airline platform, while Capital A will begin its next phase as a focused, asset-light group centred on five high-growth businesses – Asia Digital Engineering, Teleport, AirAsia Move, Santan and AirAsia Next. - FMT