HK Air’s debt restructuring approved


Cash-strapped: The signage for Hong Kong Airlines stands at the departure hall of the Hong Kong International Airport. The carrier has struggled to repay debt even before the pandemic, after months of anti-China protests in 2019 kept visitors away. — Bloomberg

HONG KONG: Most creditors of Hong Kong Airlines Ltd voted to support the carrier’s proposed HK$49bil (US$6.3bil or RM27.6bil) debt restructuring, a step to stave off insolvency after travel to and from the city dried up the past three years.

Of those voting among three classes of creditors, holders of at least 80% of the debt in each class backed the plan, according to documents sent to creditors yesterday that were seen by Bloomberg News.

Court hearings to sign off on the results are set for Dec 9 in England and Dec 14 in Hong Kong, the carrier said in a statement.

Hong Kong Airlines was struggling to repay debt even before the pandemic, after months of anti-China protests in 2019 kept visitors away.

The cash-strapped firm had seven of its planes seized by the city’s airport authority after it failed to make some payments.

Air traffic in and out of Hong Kong effectively stopped in 2020 as the city enacted one of the world’s longest quarantines to prevent the spread of Covid-19, resulting in the carrier deferring a dollar-bond interest payment.

The city in recent months has eased a litany of restrictions, including doing away with hotel quarantine for inbound travellers.

Hong Kong Airlines is among dozens of carriers and aviation-related businesses that have collapsed or have been forced to restructure and downsize.

In Asia, these include PT Garuda Indonesia Ltd, Philippine Airlines Inc and Thai Airways International Pcl. — Bloomberg

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Business News

Hong Seng acquires 51% stake in Innov8tif for RM30.8mil
Proton commerce hit new record volume of loan disbursements in 2022
Ringgit ends lower versus greenback on external pressure
Bursa Malaysia targets 39 IPO listings in 2023 with RM10bil market capitalisation
Pavilion REIT 4Q net profit surges to RM216.4mil
Nova MSC collaborates with Theta on marketing and promotion of healthcare solutions
Cypark unaware of reason for UMA
Pasukhas wins RM21mil contract in Johor
LCT braces for challenging outlook
Boustead Plantations directors resign to pursue other interests

Others Also Read