KUALA LUMPUR (REUTERS) – Lengthy-haul, low-cost service AirAsia X Bhd has run out of cash and desires to lift as much as RM500 million (S$163.5 million) to restart the airline, deputy chairman Lim Kian Onn stated in a newspaper interview printed on Saturday (Oct 17).
The Malaysian airline, the long-haul arm of AirAsia Group Bhd, stated this month it wished to restructure RM63.5 billion of debt and slash its share capital by 90 per cent to proceed as a going concern.
“We’ve got run out of cash,” Mr Lim informed The Star newspaper.” Clearly, banks won’t finance the corporate with out shareholders, each outdated and new, placing in recent fairness. So, a prerequisite is recent fairness.”
He stated the airline had precise liabilities of RM2 billion, with the bigger determine of RM63.5 billion together with all lease funds for the subsequent eight to 10 years and its massive order for Airbus SE planes and contracted engine upkeep with Rolls-Royce Holdings.
“If we discover RM300 million in new fairness, then the shareholder funds are RM300 million on the restart of enterprise and if we’re in a position to borrow RM200 million, we really feel that we are going to have a great platform to begin once more,” he informed The Star.
Mr Lim stated AirAsia X additionally wanted to persuade its lessors of its marketing strategy, including an unnamed lessor not too long ago took again one of many airline’s planes to transform it to a freighter.
The airline plans to liquidate its small Indonesia-based service and has utterly written down its stake in Thai AirAsia X in its books, with the Thai service not a part of the restructuring scheme, Mr Lim informed the newspaper.
Rival Malaysia Airways can also be in monetary bother, however he stated there can be “no good final result” from in search of to merge two airways in dire straits.
AirAsia X declined to remark past the small print printed within the newspaper article.
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