[310321.EN.AIR] Malaysian High Court grants AirAsia X Restraining Order to Hold Back Creditors

 

MALAYSIA's High Court has granted a restraining order for three months on 15 of AirAsia X Bhd's creditors over the debt recast talks for the airline, reports Bloomberg.

The order, applied for by AirAsia X to address its obligations in a timely manner, gives the creditors an opportunity for amicable discussions without "extraneous considerations," according to an exchange filing.

The order comes with certain carve-outs, which means some creditors can continue legal proceedings subject to not executing the judgment pending the lapse of today's order, according to Kwan Will Sen, a lawyer representing BOC Aviation Ltd.

AirAsia Group's long-haul arm in October proposed a sweeping restructuring plan that would wipe out almost MYR63.5 billion ringgit (US$15 billion) in debt and save the Malaysian carrier from being dragged under by aviation's worst-ever crisis.

The proposal will reduce shareholder capital at AirAsia X by 90 per cent. Last month, the court separated the airline's creditors into three categories, with Airbus SE, the largest, placed in a group of its own.

Source : HKSG / Photo : The Edge Markets.