KUALA LUMPUR, Nov 12 — AirAsia X has managed to get 100 per cent approval for its debt restructuring plan from its Class A and C scheme creditors and 97.6 per cent from its Class B creditors, thereby ensuring the passage of the troubled airline’s debt proposal.

Mercury Securities Sdn Bhd, on behalf of the carrier, said the approvals were obtained following the court convened meetings (CCMs) held with three different groups of the creditors "present and voting either in person or by proxy” at the said CCMs.

In a filing with Bursa Malaysia today, the low-cost airline noted that it had required "the requisite majority of 75 per cent” of the scheme creditors at the CCMs for the plan to be approved.

AAX held three meetings today with its scheme creditors to vote on its plan to restructure RM63.5 billion of debts.

On November 10, the Malaysian Association of Tour and Travel Agents (Matta) had called for a fairer debt restructuring plan from AAX for consumers and agents.

Failure to get creditors’ approval for its business restructuring plan will likely see the carrier go into liquidation, Matta president Datuk Tan Kok Liang was reported as saying on November 10.

Under its debt restructuring plan, AAX is aiming to reconstitute RM63.5 billion of its debt into an acknowledgment of indebtedness for a principal amount of up to RM200 million by shaving off 99.9 per cent of its issued share capital as well as a proposed share consolidation of every 10 existing shares in the company into one share.

In a separate statement today, AAX said the overwhelming and near-unanimous support will be presented for court sanction in the coming weeks, and once approved, the airline will embark on its recapitalisation plan which was approved by its shareholders in June 2021.

"Completion is expected in the first quarter of 2022, after which the airline will be well poised to compete very effectively in the markets where it will operate,” the airline’s co-founder and director Tan Sri Tony Fernandes said. "We wish to assure all passengers affected by the restructuring that it is the firm intention of AAX to put in place travelling privileges in the form of travel credits, which can be utilised for future purchases of flight tickets once international borders reopen.”

At the market close today, shares of AAX rallied 25 per cent to 7.5 sen with 116.57 million shares transacted. — Bernama