AIRASIA X BERHAD (AAX OR THE COMPANY)
- PROPOSED DEBT RESTRUCTURING
- PROPOSED CORPORATE RESTRUCTURING COMPRISING:-
(I) PROPOSED SHARE CAPITAL REDUCTION; AND
(II) PROPOSED SHARE CONSOLIDATION
(COLLECTIVELY REFERRED TO AS THE PROPOSALS)
(For consistency, the abbreviations used throughout this announcement shall have the same meanings as defined in the announcement dated 6 October 2020 in relation to the Proposals (“Initial Announcement”), where applicable, unless stated otherwise or defined herein.)
Reference is made to the announcements dated 6 October 2020, 7 October 2020 and 9 October 2020 in relation to the Proposals.
Further to the above announcements in respect of the Proposals, Malaysia Airports Holdings Berhad (“MAHB”) had through its wholly-owned subsidiary, Malaysia Airports (Sepang) Sdn Bhd (“MASSB”), objected to its classification as an unsecured creditor and expressed the view that MASSB is a secured creditor with a right to detain, and a contractual and continual lien, both particular and general over any aircraft, parts, accessories, vehicles, equipment and/or any other property belonging to and/or under AAX’s control or any ground handler appointed by AAX.
Subsequently, on 23 October 2020, the Company announced that it had been served with an unsealed copy of the Writ of Summons and Statement of Claim filed by MASSB against the Company in the High Court of Malaya at Kuala Lumpur setting out the claims of MASSB of approximately RM78.16 million (“Writ Action”).
In view of the above and in the interest of time, AAX has accommodated MAHB and made certain clarifications and revised the Proposed Debt Restructuring by re-categorising all its creditors under 2 separate classes for the purpose of the intended court convened meetings. An application to the High Court has been submitted today in respect of the revision to the Proposed Debt Restructuring.
2. REVISION TO THE PROPOSED DEBT RESTRUCTURING
All AAX’s creditors shall be re-categorised into 2 separate classes as follows and to be dealt with under the Proposed Debt Restructuring thus revising the Scheme Creditors:-
(i) One class shall consist of creditors who are considered critical or essential and who may have secured and/or other rights (“Class A”).
(ii) The other class shall consist of creditors who do not fall within Class A (“Class B”).
MASSB, the wholly owned subsidiary of MAHB, will be included in Class A described in paragraph (i) above.
The Proposed Debt Restructuring will be conditional upon the approvals of at least 75% of the total value of each class of creditors present and voting at the court convened meetings to be held for the Proposed Debt Restructuring as well as the High Court’s sanction thereto.
For information, the Debt Settlement Amount remains unchanged at an amount of up to RM200.0 million.
3. RATIONALE FOR THE REVISION
The revision to AAX’s Proposed Debt Restructuring by re-categorising all its creditors into 2 classes as detailed above is to accommodate MAHB since it has objected to its classification as an unsecured creditor but instead expressed the view that it is a secured creditor as set out above. The revision is made in the interest of time, without prejudice to AAX’s rights to defend and seek the appropriate remedies in the Writ Action and in order for the court convened meetings to be held as soon as possible for the creditors to consider and vote on the Proposed Debt Restructuring. AAX is of the view that this would be in the best interest of all creditors and stakeholders of AAX.
This announcement is dated 4 November 2020.
|Company Name||AIRASIA X BERHAD|
|Date Announced||04 Nov 2020|
|Category||General Announcement for PLC|