AirAsia X completes debt restructure, write back US$8b to profit

 

Malaysia's AirAsia X (AAX) said on Wednesday it had completed its debt restructuring and will write US$8 billion back to profits in the next quarter.

Under the airline's restructuring proposal, it would pay just 0.5 percent of the debt owed and end its existing contracts. It was approved by its creditors and the High Court last year.

The restructuring was proposed to avoid liquidation after the long-haul low-cost airline posted a record quarterly loss last September. It is one of many carriers in the Asia-Pacific region to have entered a court-overseen debt restructuring process to survive the pandemic.

"Cargo has been a strong lifeline for AAX and our recovery is already underway as a combination carrier with equal emphasis on cargo and passenger revenues, " CEO Benyamin Ismail said.

"In the next two months, we will recommence passenger services to several more international destinations in line with borders reopening."

The completion of the debt restructuring will now pave the way for the proposed RM500 million fundraising, the company said.

- Reuters