In a stock exchange filing, the company said the proceeds of a court-supervised capital structure optimisation exercise would be distributed to creditors, mainly Capital A and its related companies.
In a filing with Bursa Malaysia today, Capital A said the exercise would be undertaken through its subsidiary, Move Digital Sdn Bhd under a court-supervised framework following an application to the High Court.
Capital A said proceeds from its proposed capital structure optimisation exercise would be distributed to creditors, who are primarily Capital A, or Capital A-related companies.
The company said Move Digital is an intermediate holding company for legacy investments and does not operate any business of its own and is separate and distinct from AirAsia Move Sdn Bhd, the group’s digital travel platform, which is directly owned by Capital A and remains completely unaffected by this exercise, and continues to operate without disruption.
“The group is taking decisive steps to eliminate funding for loss-making units like BigPay, reallocating capital towards higher-return core operations to maximise long-term shareholder value,” Capital A said.
Removing BigPay’s legacy losses would immediately strengthen Capital A’s balance sheet, elevate earnings quality and enhance overall financial flexibility, the company said.
Group CEO Tony Fernandes said: “We are cleaning up our legacy assets and focussing 100% of our energy and capital on our high-growth businesses. This move makes our financial position stronger and allows us to double down on what we do best.” - FMT
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