AirAsia founder began buyout talks as share fall put loans at risk

Fernandes has steadfastly defended the company's finances and outlook and said the market was undervaluing AirAsia

SINGAPORE: AirAsia founder Tan Sri Tony Fernandes began talks with bankers to take Asia's No.1 budget airline private after a plunge in its stock price put $200 million worth of loans borrowed against AirAsia's shares at risk, people familiar with the situation told Reuters.

The Malaysian entrepreneur and his business partner Datuk Kamarudin Meranun, respectively Group CEO and Chairman of AirAsia Bhd, borrowed the money against their 19 percent indirect holding in AirAsia from Credit Suisse and CIMB to help fund private ventures, people familiar with the situation said.