KUALA LUMPUR, Oct 9 ― Long-haul budget airline AirAsia X Bhd (AAX) expects its proposal for the RM63.5 billion debt restructuring exercise will not have any effects on its share capital, substantial shareholders’ shareholdings, as well as the group’s structure.

In a filing with Bursa Malaysia today, the sister company of AirAsia Bhd said the exercise, however, would impact the company’s earnings per share, net assets per share and gearing.

The airline said it planned a massive debt restructuring proposal in which the airline will reconstitute approximately RM63.5 billion in excess of the debt settlement worth RM200 million owing to the creditors on a pari passu basis.

"Subject to the proposed debt restructuring being approved and implemented, AAX proposes that airline customers and travel agents receive travel credits for future travel or purchase of seat inventory,” it said.

AAX has also proposed for share capital reduction of approximately RM1.38 billion from an audited amount of RM1.53 billion as at December 31, 2019 to approximately RM150 million.

It added that the proceeds would be used to offset the accumulated losses of AAX.

It was reported that AAX will be requiring approval from at least 75 per cent of the total creditors for the proposal to be implemented. ― Bernama