AAX April-June 2021 Total Loss Of RM24.63 Billion On Provision For Creditors; Creditors’ Meeting Planned For October

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AirAsia X Bhd (AAX), which is in the process of restructuring its debt, reported a net loss of RM24.63 billion for the April 1-June 30, 2021 quarter due to provisions for amounts owed to creditors.

According to AAX, it set a provision of RM23.7 billion for the amount owing to creditors if the company fails to meet the terms of the contract.

“It should be noted that the contractual commitments for which the provision is made will be waived if the proposed debt restructuring operation is successfully completed,” AAX added.

The long-haul, low-cost carrier is in the process of restructuring RM63.5 billion in loans to unsecured creditors, which would be reconstructed into a recognition of indebtedness by AAX for up to RM200 million in primary.

It has been granted an extension until March 2022 for the restraining order against 15 of its creditors over the restructuring and the convening of a creditors’ meeting, with an order to report back to the High Court on the progress in mid-December this year.

“The company continues to make good progress in negotiations with its creditors and aims to conduct the meeting by the end of October 2021,” the company stated.

AAX reported a loss before interest, taxes, depreciation, and amortisation (LBITDA) of RM58.16 million on revenue of RM72.26 million, excluding the provision.

With the huge provision in the quarter, AAX concluded the 18-month period ended June 30, 2021 with a net loss of RM31.63 billion on revenue of RM1.24 billion.

LBITDA without the provision came in at RM411.99 million on revenue of RM1.24 billion.

AAX shares closed today at nine sen, up half a sen or 5.88 percent, valuing the group at RM352.59 million.

Published by Zack Baharum

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