The Malaysian High Court gave additional time for AirAsia X to convene its creditor meetings, the airline told Reuters on September 15, 2021.
Following the approval by the Malaysian High Court on February 22, 2021, the separate meetings between the airline and creditors were supposed to be held until August 2021. However, with the latest Court’s approval to extend the deadline, the long-haul subsidiary of AirAsia Group will have time until March 2022.
The meetings are for the purpose of “considering and, if thought fit, approving with or without modification the Proposed Debt Restructuring to be proposed by AAX [AirAsia X – ed. note] and the creditors,” AirAsia X wrote in a bourse filing.
AirAsia X seeks to restructure its total debt of 64.15 billion ringgit ($15.3 billion).
On July 1, 2021, AirAsia X shareholders had approved the airline’s restructuring plan, marking a major milestone in the airline’s attempt to survive.
However, to start the airline’s restructuring, the plan needs approval from its creditors holding at least 75% of the total value of the debt.