Malaysia’s AirAsia X proposes paying 0.5% of $8.1 bln debt

KUALA LUMPUR, Oct 18 (Reuters) – AirAsia X Bhd (AAX) (AIRX.KL) is proposing to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts so that it can restructure 33.65 billion ringgit ($8.1 billion) of liabilities, a document seen by Reuters shows.

The Malaysian low-cost long-haul airline, a sister carrier to cash-strapped AirAsia Group Bhd (AIRA.KL), said in a stock exchange filing on Monday it had set a date of Nov. 12 for creditor meetings to vote on the restructuring proposal.

“To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring,” the airline said in a 127-page explanatory statement for the creditors meeting seen by Reuters.Read more