AirAsia Long-Haul Arm Pitches Dramatic Overhaul to Survive
- AirAsia X seeks to undergo $15 billion debt, stock restructure
- Fernandes will seek shareholder, creditor support for proposal
An AirAsia Bhd. aircraft, right, prepares to take off as an AirAsia X Bhd. aircraft taxis on the tarmac at Kuala Lumpur International Airport 2 in Sepang, Selangor, Malaysia.
Photographer: Charles Pertwee/BloombergThis article is for subscribers only.
AirAsia Group Bhd.’s long-haul arm proposed a sweeping restructuring plan that would wipe out almost 63.5 billion ringgit ($15.3 billion) in debt and save the Malaysian carrier from being dragged under by aviation’s worst-ever crisis.
The proposal, which requires approvals from investors and creditors, would also reduce shareholder capital at AirAsia X Bhd. by 90%, according to an exchange filing on Tuesday. Carrying through with the overhaul is the only way for the airline to survive and emerge from its grounding since late March, it said.