AirAsia X has been granted by the High Court of Malaya a nine-month extension of a restraining order on creditors.
The order was initially granted for three months from 17 March. It is now valid for another nine months from 17 June, the company said in a same-day disclosure to Bursa Malaysia.
In a 17 March disclosure, AirAsia X said it proactively applied for the restraining order to help address its debt obligations in an orderly manner via its proposal for debt restructuring.
It added that the restraining order allows creditors “an opportunity for amicable deliberation on the proposed debt restructuring without extraneous considerations so that a decision can be reached on the same”.
The order was not expected to have any material financial and operational impact on the company.
Concurrently, the airline’s corporate restructuring has moved along. On 1 June, it secured shareholder approval to raise up to MYR500 million ($120 million) in equity funding, first announced in December and the details finalised in April, according to Bursa Malaysia disclosures.
The sum comprises up to MYR300 million from a rights issue of new ordinary shares and up to MYR200 million from issuing subscription shares to a special-purpose vehicle company incorporated by AAX’s deputy chairman, Lim Kian Onn.
Cirium fleets data shows that AirAsia X’s in-service and stored fleet comprises 22 Airbus A330-300, of which only 11 flew in the past year. The existing fleet has an average indicative market lease rate of $220,000. Four aircraft are managed by AirAsia and the rest by various lessors.
AirAsia X also has orders for 30 A321XLRs and 76 A330-900neos.