AirAsia Tumbles on Doubts About Continuing as Going Concern
- Losses, liabilities and virus threaten going concern status
- Budget carrier posted record quarterly loss, seeks capital
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AirAsia Group Bhd. shares slumped nearly 18% following a trading suspension that came as auditor Ernst & Young said the carrier’s ability to continue as a going concern may be in “significant doubt.”
In a statement to the Kuala Lumpur stock exchange, Ernst & Young said AirAsia’s current liabilities already exceeded its current assets by 1.84 billion ringgit ($430 million) at the end of 2019, a year when it posted a 283 million ringgit net loss. That was before the coronavirus crisis, which has further hit the carrier’s financial performance and cash flow.