PETALING JAYA: AirAsia X (AAX) Bhd has given in to Malaysia Airports (Sepang) Sdn Bhd (MASSB) and will now classify the latter under “Class A” in its revised restructuring scheme.
Confirming StarBiz’s report on Monday, AAX said it has accommodated MASSB – a wholly-owned unit of Malaysia Airports Holdings Bhd – and made certain clarifications under two separate classes of “A” and “B”.
Class A shall consist of creditors who are considered critical or essential and who may have secured and other rights while Class B shall consist of creditors who do not fall within Class A.
The airline said in a filing with Bursa Malaysia that it had submitted an application to the Kuala Lumpur High Court in respect of the revision to its proposed debt restructuring plan. The plan, which was announced on Oct 6, proposed that unsecured creditors take a 99% haircut from RM63.5bil to RM200mil to avoid liquidation.
MASSB, which objected to its classification as an unsecured creditor, also filed a RM78mil lawsuit against AAX.
The low-cost long haul arm of AirAsia Group Bhd said in a statement yesterday that the writ demanding an immediate payment of RM78mil comprised largely of passenger service charges (PSC) that were never collected from passengers. It reiterated that it would not meet that demand, saying that the issue of the legality of the PSC scheme was the subject matter of pending litigation and a further court hearing has been scheduled for March 24 next year.
“This duplicity of legal actions is an abuse of the court process. This is and has always been a contentious matter between the parties but now, the timing of the RM78mil claim appears opportunistic.
“By seeking immediate payment, MASSB is impeding the restructuring process and AAX is concerned that this appears to be an attempt to gain preferential treatment and an unfair and unlawful advantage over all other creditors, including the thousands of passengers that are affected, ” AAX said in a statement, adding that the disputed RM78mil has been included in full in Class A.
The scheme will be in line with all other creditors and will avoid any preferential treatment for MASSB.
It said the revision was made in the interest of time, without prejudice to AAX’s rights to defend and seek the appropriate remedies in the writ action and in order for the court convened meetings to be held as soon as possible for the creditors to consider and vote on the proposed debt restructuring.
The airline also reported that major creditors have demonstrated great maturity, professionalism, constructive engagement and commercial realism in dealing with the debt restructuring exercise.
“Though the process is on-going and a common consensus remains to be reached, AAX looks forward to being able to present the revised scheme for all creditors to vote on early in the first quarter of 2021.
“AAX urges MASSB, being possibly one of the largest beneficiaries of a revitalised AAX to allow for the convening of a timely voting by all creditors to complete this restructuring process so that AAX can take to the skies again, ” it said.
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