The Securities Investors Association (Singapore) (SIAS) has submitted a list of queries to the board of Singapore Airlines (SIA) prior to the carrier’s emergency general meeting (EGM) on the S$15 billion ($10.5 billion) cash call proposal to raise funds for the airline amid the COVID-19 crisis.

The EGM will be held April 30, and voting will be done electronically.

On March 27, SIA announced that it will raise S$15 billion though issuance of new shares and bonds, backed by government owned investment company Temasek Holdings. It will release 1.78 billion shares to raise S$5.3billion and another S$3.5 billion in the form of a 10-year mandatory convertible bond (MCB). 

Represented by SIAS president and CEO David Gerald, the letter is addressed to SIA CEO Goh Choon Phong and chairman Peter Seah. It lists 13 questions, with 10 questions addressing the cash-raising exercise. These include how and why S$15 billion was determined, and why 38% of S$8.8 billion was used for capital expenditure purposes. 

A SIA spokesperson confirmed that the airline has received the questions from SIAS and will be sharing its responses “in due course.”

SIAS is a non-profit advocacy organization that aims to protect investor’s rights as well as providing necessary and timely information on company’s actions. 

In May, SIA plans to continue flying to 15 cities at a frequency similar to April. Singapore’s so-called “circuit breaker” movement-control measures have been extended until June 1, further affecting SIA’s nest steps. 

The company has also warned of fuel hedging losses for March, as it hedged 51% in MOPS and 22% in Brent at average prices of $74 and $58 per barrel respectively for fiscal 20/21. In March, SIA over-hedged and the April 20 WTI crash has dragged Brent to $20/barrel at time of writing. Virgin Australia’s decision to enter into voluntary administration could add to SIA’s problems, as it holds a 20% stake in the Australian carrier.