aviation industry

Malaysian court grants AirAsia X restraining order against potential legal action

Reuters
Malaysian court grants AirAsia X restraining order against potential legal action

AIRASIA X. The tail of an AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang, Indonesia, September 20, 2017.

File photo by Beawiharta/Reuters

AirAsia X, the long-haul affiliate of AirAsia Group, has been trying for months to restructure $15.57 billion of debt

The Malaysian High Court on Wednesday, March 17, granted budget airline AirAsia X Bhd a 3-month restraining order against any legal proceedings that may be filed against it, which could have slowed down its debt restructuring process.

“The restraining order allows the creditors an opportunity for amicable deliberation on the proposed debt restructuring without extraneous considerations,” a filing on the bourse said.

AirAsia X, the long-haul affiliate of AirAsia Group Bhd, applied for a restraining order in December, which will serve to restrain any legal proceedings to be initiated against it.

The airline has been trying for months to restructure 64.15 billion ringgit ($15.57 billion) of debt into 200 million ringgit of debt.

More than a dozen creditors have filed to intervene in its proposed court-supervised restructuring, with lessor BOC Aviation Ltd and airport operator Malaysia Airports Holdings Bhd arguing that AAX is “hopelessly insolvent.”

The court last month ordered the airline to convene separate meetings with its different groups of creditors within 6 months. – Rappler.com