Malaysian budget airline AirAsia X Bhd (AAX), the long-haul arm of AirAsia Group Bhd , said it has proposed restructuring $15.3 billion of debt and reducing its share capital by 90% to continue as a going concern.
AAX said it has severe liquidity constraints and, with no return to normalcy in sight, “imminent default of contractual commitments will precipitate a potential liquidation.”
Group-wide debt restructuring and renegotiation of financial obligations, as well as updating its business model, are pre-requisites to raising fresh equity and debt, which will be required to restart the airline, it said late on Tuesday.
