AAX most sought- after stock on recovery plan news

KUALA LUMPUR: News on AirAsia X Bhd’s (AAX) new restructuring proposal has sparked buying interest in the long haul budget airline’s shares.

At 10.30 am, AAX’s shares rose 1.5 sen to 9.5 sen with 263.27 million shares changing hands; overtaking ACE Market debutant Mobilia Holdings Bhd to become the most actively traded counter in the early session.

The news also boosted shares of AAX’s sister company, AirAsia Group Bhd, which saw its shares rising by 10 sen to 91.5 sen with 134.81 million shares transacted.

At closing, AAX ranked as the second most actively traded counter. The stock closed at eight sen each with more than 613.61 million shares traded. As for AirAsia Group, it came in as the seventh most actively traded at 95 sen per share with 284.28 million shares exchanging hands.

Reuters reported that AAX had proposed a separate restructuring programme for its aircraft lessors that aimed to tackle their concerns.

The international news agency said the proposal sought to address lessors’ concerns about their forward commercial agreements and the viability of the airline’s business after recapitalisation.

“Under the revised proposal, AAX said lessors are expected to recover at least 60 per cent of what they are owed,” it said, adding that the new proposal for lessors is a key step as the airline looks to win creditors’ approval for its restructuring.

According to Reuters, AAX had been trying for months to reconstitute RM64.15 billion of debt into RM200 million of debt.

“More than a dozen creditors, mostly lessors, had intervened in court to challenge a proposal that would have meant a haircut for them of 99.7 per cent,” it added.

Under the revised proposal, AAX said lessors are expected to recover at least 60 per cent of what they are owed. Reuters