AirAsia X revises restructuring scheme to accommodate Malaysia Airports, but says won’t be cowed

AirAsia X said MASSB is impeding its restructuring process by seeking immediate payment of RM78 million in PSC charges. — Reuters pic
AirAsia X said MASSB is impeding its restructuring process by seeking immediate payment of RM78 million in PSC charges. — Reuters pic

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KUALA LUMPUR, Nov 5 — AirAsia X Bhd has submitted a revised restructuring scheme to seek the convening of a court-sanctioned meeting for all creditors to vote on the terms of the restructuring. 

In a statement, it said pursuant to its announcement of the scheme of Oct 6, Malaysia Airports (Sepang) Sdn Bhd (MASSB) had objected to its classification as an unsecured creditor. 

“After consultation, AirAsia X has accommodated MASSB and made certain clarifications and revised the scheme under two separate classes, ‘A’ and ‘B’. 

“Class A shall consist of creditors which are considered critical or essential and may have secured and/or other rights. Class B shall consist of creditors who do not fall within Class A,” it said. 

The low-cost carrier said MASSB has further issued a writ demanding an immediate payment of RM78 million claim, comprising largely of passenger service charges (PSC) that were never collected from passengers.

“AirAsia X wishes to reiterate that it will not meet this demand, for, among others, the issue of the legality of the PSC scheme is the subject matter of pending litigation, and a further court hearing is scheduled for March 24, 2021. 

“This duplicity of legal actions is an abuse of the court process. This is and has always been a contentious matter between the parties, but now, the timing of the RM78 million claim appears opportunistic,” it said.

By seeking immediate payment of the RM78 million, it said, MASSB is impeding the restructuring process.

“AirAsia X is concerned that this appears to be an attempt to gain preferential treatment and an unfair and unlawful advantage over all other creditors, including the thousands of passengers that are affected,” it said.

AirAsia X also reported that major creditors have all demonstrated maturity, professionalism, constructive engagement and commercial realism in dealing with the debt restructuring exercise. 

Although the process is on-going and a common consensus remains to be reached, AirAsia X said it is looking forward to being able to present the revised scheme for all creditors to vote on early in the first quarter of 2021.

“AirAsia X urges MASSB — being possibly one of the largest beneficiaries of a revitalised AirAsia X — to allow for the convening of a timely voting by all creditors to complete this restructuring process so that AirAsia X can take to the skies again and continue toprovide an essential public service to all Malaysians,” it added. — Bernama

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