Poll: Has AirAsia Berhad Over-Extended Itself?
AirAsia X is negotiating to restructure its debt obligations as a prerequisite to seeking the equity it needs to survive and resume operations.
In the long-haul LCC’s latest update on Oct. 6, the airline describes a dire predicament. AirAsia X faces “severe liquidity constraints” attributable to the continued grounding of all scheduled flights with no firm date for them to resume. “An imminent default of contractual commitments will precipitate a potential liquidation of the airline,” AirAsia X said.
To avoid this outcome, the airline’s board and management are proposing a restructuring plan “which if approved, will secure the airline’s continued ability to fly again.” Board member Lim Kian Onn has been appointed deputy chairman to lead the restructuring effort.
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