(Reuters) – Malaysia’s Airasia X (AAX) said on Wednesday it had completed its debt restructuring, and will write 33 billion ringgit ($7.86 billion) back to profits in the next quarter.
Under the airline’s restructuring proposal, it would pay just 0.5% of debt owed and end its existing contracts. It was approved by its creditors and the High Court of Malaya 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 500 million ringgit fund raising, the company said.
($1 = 4.1960 ringgit)
(Reporting by Arundhati Dutta in Bengaluru; Editing by Tomasz Janowski)
