179
AirAsia X Berhad • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2014
32 UNCONSOLIDATED STRUCTURED ENTITIES
The Company has set up Merah X entities, special purpose companies (“SPC”) pursuant to aircraft related borrowings obtained from various financial institutions. Under the arrangement,
the Company enters into an Aircraft Instalment Sale Agreement with the SPC, permitting the company to possess and operate each of the Airbus A330-300 aircraft financed under the
facility.
The SPC are orphan trust companies in which the Company has no equity interest.
The details of the Merah X entities are as follows:
Name
Country of incorporation
Purpose
Merah X Satu Limited
Malaysia
Purchase of 2 Airbus A330-300 aircraft
Merah X Dua Limited
Malaysia
Purchase of 3 Airbus A330-300 aircraft
Merah X Tiga Limited
Malaysia
Purchase of 2 Airbus A330-343 aircraft
Merah X Empat Limited
Malaysia
Purchase of 1 Airbus A330-300 aircraft
Merah X Lima Limited
Malaysia
Purchase of 1 Airbus A330-300 aircraft
Merah X Enam Limited
Malaysia
Purchase of 2 Airbus A330-300 aircraft
The SPC do not incur any losses or earn any income during the financial year ended 31 December 2014. The aircraft and the corresponding term loans and finance costs associated with
the SPC have been recognised by the Group and Company upon the purchase of the aircraft.
The Group and the Company does not provide any financial support to the SPC or have any contractual obligation to make good the losses, if any.
33 EVENTS SUBSEQUENT TO THE FINANCIAL YEAR END
On 30 January 2015, the Company announced the proposal to undertake a renounceable rights issue of new ordinary shares of RM0.15 each in AirAsia X Berhad together with free
detachable warrants to raise gross proceeds of up to RM395 million. This corporate transaction was approved by the shareholders at the Extraordinary General Meeting held on 27
March 2015.
34 RECLASSIFICATION OF COMPARATIVES
During the financial year ended 31 December 2014, the presentation of the other (loss)/gain was changed to better reflect the operating performance of the Group and the Company.
Previously, other (loss)/gain was charged/credited in arriving at operating (loss)/profit.
Comparatives had been re-presented to align with the current year’s presentation.
