Malaysia’s AirAsia X creditors agree restructuring, Airbus orders cut

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Airbus A320-216 9M-AJA AirAsia

Posted By: Marcel van Leeuwen November 12, 2021

  • Proposing to pay just 0.5% of debt owed
  • Shares close 25% higher
  • To cut Airbus orders to 15 A330neos, 20 A321XLRs

(Reuters) – AirAsia X (AAX) creditors have agreed to a restructuring that will pay just 0.5% of debt owed and end its existing contracts, the Malaysian long-haul low-cost airline said on Friday.

The airline has also reached a deal with its largest creditor, Airbus to reduce a multi-billion dollar order for 78 A330neo widebody planes and 30 A321XLR narrowbodies. AAX had been Airbus’ biggest customer for the A330neo.

AAX now plans to take 15 A330neos and 20 A321XLRs, an airline spokesperson said.

“We confirm that we have agreed to reduce the airline’s outstanding orders,” an Airbus spokesperson said. “This is another example of how we have worked with customers to adapt to the impact of the pandemic.”

AAX said 99% of creditors across three groups had voted in favour of its plan to restructure 33.65 billion ringgit ($8.1 billion) of liabilities to avoid liquidation.

Around half was owed to Airbus for terminating airplane orders, a 127-page explanatory statement for the creditors meeting.

SOURCE REUTERS, Read more..

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