Malaysia's Airasia X (AAX) AIRX.KL has said that it has 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.
Statements By CEO
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"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."
Proposed 500m Ringgit Fund Raising
The completion of the debt restructuring will now pave the way for the proposed 500 million ringgit fund raising, the company said.