AirAsia X assures recovery for lessors in new restructuring proposal

Under the revised proposal, AAX said lessors are expected to recover at least 60% of what they are owed.

KUALA LUMPUR: Malaysian long-haul budget airline AirAsia X Bhd (AAX) has proposed a separate restructuring programme for its aircraft lessors that aims to tackle their concerns, citing a chance to recover rental losses, a document seen by Reuters shows.

The airline, an affiliate of AirAsia Group, has been trying for months to reconstitute RM64.15 billion (US$15.9bil) of debt into RM200 million of debt. More than a dozen creditors, mostly lessors, had intervened in court to challenge a proposal that would have meant a haircut for them of 99.7%.