KUALA LUMPUR: AirAsia X Bhd
(AAX) is proposing to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts so that it can restructure 33.65 billion ringgit ($8.1 billion) of liabilities, a document seen by Reuters shows.
The Malaysian low-cost long-haul airline, a sister carrier to AirAsia Group Bhd, on Monday told the stock exchange it had set a date of Nov. 12 for creditor meetings to vote on the restructuring proposal.
"To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring," the airline said in a 127-page explanatory statement for the meeting seen by Reuters that is being sent to creditors.
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