KUALA LUMPUR (Businesshala) – Malaysian long-haul low-cost airline AirAsia X (AAX) said on Friday that 100% of the first three groups of creditors had agreed to a restructuring plan that would pay off just 0.5% of debt. proposes to terminate all existing contracts.
Three different classes of creditors, which include Airbus SE, BOC Aviation Ltd and Rolls-Royce Holdings Plc, have all voted in favor of the plan, Businesshala News reported, citing a person familiar with the matter.
An AirAsia X spokesperson declined to comment on the Businesshala report, saying voting is ongoing.
AAX said last month that the airline would face liquidation if creditors did not agree to restructure liabilities worth 33.65 billion ringgit ($8.1 billion).
It is one of several carriers in the Asia-Pacific region that has entered a court-monitored debt restructuring process to avoid the pandemic. Others include Malaysia Airlines, Virgin Australia, Thai Airways and Philippine Airlines.
AAX requires 75% of each of the three classes of creditors to approve the plan to proceed.
The first category of AAX creditors include airports, financial institutions and maintenance providers, according to a 127-page explanatory statement for the meeting of creditors seen by Businesshala.
The second category includes engine suppliers, lessees, business creditors, travel agents and passengers, while the third category is the largest creditor Airbus, the document said.
The document states that half of the airline’s total liability is the cost of liquidating airplane orders from Airbus for 78 A330neo widebodies and 30 A321neo narrowbodies.
AAX also said it is in talks with the lessees of the 29 aircraft and some other creditors for continuing or future business relationships on commercial terms.
($1 = 4.1665 ringgit)