For the purpose of this announcement, “USD” refers to United States Dollar and “RM” refers to Ringgit Malaysia. Unless otherwise stated, the exchange rate of 4.0390, which is the rate quoted by Bank Negara Malaysia as at 12:00 p.m. on 24 February 2021, being the latest practicable date of this announcement, has been applied to the figures included in this announcement.

Reference is made to AAGB’s announcements on 5 October 2020 (reference number GA1-05102020-00035) and 17 November 2020 (reference number GA1-16112020-00016) regarding the cessation of operations and filing of bankruptcy proceedings by AAJ. On behalf of the Board of Directors of the Company, we wish to announce that AAJ has commenced its bankruptcy proceedings as ordered by the court on 24 February 2021.

As a result of the bankruptcy proceedings, the company has recognised a loss of USD74,112,615 (equivalent to RM299,340,852) in the second half of 2020 due to financial assistance in the form of intercompany transactions and loans being written off as these amounts were deemed to be irrecoverable. The company also incurred USD5,182,725 (equivalent to RM20,933,026) in the fourth quarter of 2020 and first quarter of 2021 for expenses related to the aircraft de-registration to move 3 aircraft from Japan to Malaysia.

Further announcement(s) will be made in due course on the particulars of claim and financial impact to the Company, if any, under the bankruptcy proceedings. This announcement is dated 24 February 2021.