Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (March 17): The High Court today granted a restraining order for three months on 15 of AirAsia X Bhd (AAX) interveners or creditors over its present restructuring exercise.

The order was granted by Judicial Commissioner Ong Chee Kwan following proceedings which were done online.

"The order was granted on all intervenors (creditors) and any other actions as well," AAX lawyer Gopal Sreenevasan told theedgemarkets.com.

Gopal appears together with counsel S Suhendran.

On Feb 19, Ong also granted leave (permission) for the long-haul low-cost airline to meet with its creditors.

AAX’s list of interveners or creditors comprises BOC Aviation Ltd, Malaysia Airports (Sepang) Sdn Bhd, Macquarie Aircraft Leasing Services (Ireland) Ltd, Sky High Leasing Co Ltd, International Lease Finance Corp KDAC Aircraft Holding 4 Ltd, Jerdons Baza Leasing 1048 Designated Activity Co, Jerdons Baza Leasing 1066 Designated Activity Co, Jerdons Baza Leasing 1075 Designated Activity Co, Lavender Leasing One Ltd, Lavender Leasing Two Ltd, BNP Paribas Singapore, Awas 1533 Ltd, Awas 1549 Ltd and Airbus S.A.S.

BOC Aviation’s lawyer Kwan Will Sen and three other lawyers representing the interveners or creditors confirmed the High Court’s decision today.

Kwan, however, said the restraining order was given with certain "carve-outs", which means some of the interveners or creditors are allowed to go ahead with their action subject to it not being executed pending the lapse of today's restraining order by the High Court.

AAX announced on Oct 6, 2020, among others, a debt restructuring scheme with unsecured creditors of the group.

In a Bursa Malaysia filing then, AAX said the debt restructuring entailed a restructuring of approximately RM63.5 billion of debts to be reconstituted into an acknowledgement of indebtedness by AAX for a principal amount of up to RM200 million.

"Any balance in excess of the above-mentioned reconstituted amount and all other sums after the cut-off date as at June 30, 2020 arising from these debts (including interest, penalty interest etc) shall be waived," AAX said.

On Feb 19, 2021, it was reported that the High Court here on that day granted leave for AAX to hold meetings with its creditors.

It was reported that the court had separated AAX's creditors into three categories under which Malaysia Airports Holdings Bhd was placed in the first category while the second group comprised other creditors.

It was reported that aircraft maker Airbus was placed in the third category.

In a Bursa filing today, AAX confirmed that the High Court had granted the company, among others, a restraining order pursuant to Section 368 of the Companies Act 2016 for a period of three months from the date of the order, subject to any application by AAX for any extension of time, except with leave of the High Court and subject to any terms the High Court may impose.

AAX said the restraining order was applied for as part of a proactive measure by AAX to address its debt obligations in an orderly manner via the proposed debt restructuring.

AAX said: "The restraining order allows the creditors an opportunity for amicable deliberation over the proposed debt restructuring without extraneous considerations, so that a decision can be reached on the same."

Edited ByJoyce Goh and Chong Jin Hun
      Print
      Text Size
      Share